Polestar, the Swedish EV manufacturer, pursues Tesla directly through steep discounts for Tesla owners who want to switch brands because of increasing Tesla brand dissatisfaction under Elon Musk’s leadership. Polestar achieved a 76% increase in deliveries through their targeted offers, which accounted for nearly 50% of their first-quarter 2025 global sales, according to U.S. head of sales Jordan Hofmann.
The U.S. Tesla owners leasing Polestar 3 vehicles receive discounts worth up to $20,000 through this campaign that makes their purchase more affordable than Tesla’s prices. The Polestar 3 with full equipment now starts at $73,000 for leasing purposes, which makes it less expensive than the base price of the Tesla Model S.
The “conquest campaign” from Polestar started as a pilot in February before extending to March and continues through April because of positive customer feedback. Volvo’s South Carolina manufacturing plant enables Polestar to produce the 3 model outside Chinese territory, thus bypassing recent U.S. import taxes on vehicles made in China.
Tesla stock prices declined by 32% throughout this year because of reduced sales performance and increased trade-in activity. Negative public reactions toward Musk’s political views and rising EV price points contributed to the market backlash.
The automotive industry faces price cuts from Polestar and other companies, including Ford, Stellantis, and Hyundai, to maintain competitiveness during uncertain tariff conditions. Lucid Motors, which produces electric vehicles in the United States, is currently running a Tesla trade-in promotion.
The automotive company Polestar accelerates its production scale-up while working to decrease its dependence on China under support from its Chinese investor, Geely. The aggressive sales approach by the company holds significant potential for achieving profitability and market growth because U.S. demand remains at stake alongside increasing costs.
