Polestar Targets Tesla Owners with New Incentive Amidst Musk Backlash
As Tesla faces criticism over CEO Elon Musk’s controversial actions, a new rival is taking aim at the company’s customer base. Polestar, a luxury electric vehicle manufacturer, has launched an aggressive incentive program to attract Tesla owners.
Polestar, owned by the Chinese company Geely, has announced the Polestar Conquest Program bonus, offering $5,000 to Tesla owners who switch to a Polestar 3. This incentive is part of a larger package that includes up to $15,000 in clean vehicle incentives, potentially saving customers $20,000 on a lease for the 2025 Polestar 3.
The base price for the 2025 Polestar 3 starts at $73,400, excluding a $1,400 destination charge, as reported by the Free Press. This makes the offer particularly attractive to those considering a high-end electric SUV.
Polestar’s spokesperson, Mike Ofiara, explained that the bonus does not require a trade-in, and applies to all Tesla owners or lessees. “We have not done anything like this in the past with specific automakers,” Ofiara noted in an email.
The program, which began on February 21, has been extended due to positive responses. During the last week of February alone, Polestar’s “customer handovers” accounted for 60% of the month’s total. Additionally, Polestar USA has reported a surge in online searches and inquiries.
Despite the buzz, Ofiara did not comment on why Tesla was specifically targeted. Tesla has not responded to requests for comment from the Free Press.
While Tesla remains a formidable force with strong loyalty among its customers and significant manufacturing presence in the U.S., the recent reports of declining sales have opened a window for competitors like Polestar.
Polestar’s roots trace back to a Swedish racing team known for enhancing Volvos. After being acquired by Volvo, the brand eventually evolved into an independent producer of performance electric vehicles under Geely. With production facilities in China, Europe, and South Carolina, Polestar is strategically positioned to expand its footprint, including the introduction of its EX30 model in Europe to circumvent tariffs on Chinese-built EVs.
Joseph Yoon, a consumer insights analyst at Edmunds, praised the incentive as a “smart play by a premium EV brand launching multiple models in the next few years.” He added that the incentives provide “a clever and compelling reason for underwater Tesla owners to consider a switch,” particularly those affected by Tesla’s recent price cuts.
With a focus on upscale Model S and X buyers rather than the lower-priced Model 3 or Y, Polestar aims to carve out its niche in the luxury EV market by leveraging its Volvo heritage and innovative engineering.
Original Story at www.freep.com