Polestar 3, due in “weeks”, is the next step for its CEO to “self-sustain” his company
“You can really push this car,” says the Polestar CEO as he cruises along the road with other enthusiasts in Spanish Bay, north of Pebble Beach, during Monterey Car Week. He praises its ability to be comfortable and smooth, while still providing the engaging handling that Polestar’s previous two cars, hybrid Polestar 1 or electric Polestar 2 owners, have come to love. In his neutral-hued suits, he blends in with the pale interior of full-size SUV. The yellow seatbelt on his chest is the only difference. It’s an aesthetic that matches the attitude of the car itself: a premium, minimalist feel with the sharp performance typical of Polestar machines.
Safe EV ground, shifting political sands
But the Polestar 3 marks a new way forward for the brand on U.S. streets. Though the car that Ingenlath hustles through traffic in Monterey was built in China, the first American-assembled Polestar 3 SUVs are just starting to roll off the factory lines at Polestar’s plant in Ridgeville, South Carolina.
Image credits
: Polestar
This factory has been making cars for Volvo since the 1970s, when it was owned by China’s Geely Holding. Polestar, a spin-off from Volvo and owned by Geely Holdings in Sweden, shares space with Volvo as it accelerates in the United States despite the recent tariffs imposed on Chinese electric vehicles.
Indeed, while the company’s Polestar 2 is built in Gothenburg, all American-market Polestar 3 SUVs will come from South Carolina.“Polestar 3 production is, I call it, on safe ground,” Ingenlath says.
Safe, yes, but shifting sands. Ingenlath believes that EV demand on the U.S. Market is evolving, and will require patience. “We’ll see,” says Ingenlath. “but it’s certainly not something that worries me about the purpose of our company.”
Ingenlath says he would love for adoption rates to be even higher here, of course, but he’d be happier if United States politics could be “a bit more consistent.”
He’s watching the election closely. He’s watching the election closely. When you are creating a premium brand of car, consistency is key. You need consistency with your model politics, your pricing, etc., and we’d love to have a more stable decision-making base. You can’t react every week or month. You need years… to make meaningful economic decisions.”
Cars like the Polestar 3 take upwards of five years to design and develop. Moves like the new tariffs on Chinese-made EVs imported to the U.S. — which sprung up practically overnight — are a real threat.
Funding for EVs
That’s just one challenge Polestar has faced lately. Volvo sold a large portion of its stake in the company at the start of 2024. Ingenlath minimizes the significance of this move, noting that Volvo holds approximately 18% in the company. He says that the stake is not small. “If you own 20% of a company, you’re pretty interested in how the company is doing.”
Polestar has turned to banks for a $1 billion loan to keep things on track. Ingenlath insists that the change in ownership did not affect how he runs his business. Still, he says, it’s always good to focus on the fundamentals.
“It’s important now to show them execution capability,” Ingenlath remarks of his obligations to the banks, “that we have these superb cars coming out, that we have the markets successfully launching a car, delivering and selling.”
Ingenlath declines to say whether Polestar might need more financing to execute that plan but says his focus now is making Polestar “self-sustaining.”
A bet on SUVs
The Polestar 3 is integral to that plan. Ingenlath says the Polestar 2 will be a good-looking, well-performing sedan in the U.S., but it won’t meet the needs of families. The vehicle is much larger, more upright, and roomier than the Polestar 2, and still promises a taste of the same driving character.
Importantly, sales growth is required to set the stage for Polestar’s next releases. The iterative nomenclature is continued with the Polestar 4 – a smaller SUV which trades off some of the Polestar 4’s volume and all rearward visibility for a dramatic sweeping roofline, and an affordable price starting at $54,900. Image credits
: Polestar
Then comes the Polestar 5 – a stylish, sporty sedan that ties in with the brand’s focus on design, which Ingenlath believes is more important for the business than the federal EV subsidy. He says, “We need to get people driving a Polestar and buying our products because they are so desirable. They want them.” The Polestar 4 will be available later this year. The Polestar 5 is expected to come out in 2025. This is a very aggressive schedule, considering that the Polestar 2 was the only product available in the U.S. for almost four years. It wasn’t the original plan. Software issues have caused significant delays for the Polestar 3. This has also affected its corporate sibling Volvo EX90. Ingenlath insists that Polestar’s ability for rapid iteration is due to the technology shared with Volvo. “Why would we build ADAS ourselves?” he asked. Volvo provides a great technology base for the premium vehicle we are building. Volvo isn’t the only partner. Polestar, an early adopter for Android Automotive, gave Google the entire in-car interface.
“That’s one the nicest, smoothest success stories in actually implementing technology,” says he. A decision that initially was met with skepticism. “People were asking, ‘Oh what are you doing?” You’re really in bed with Google, right? Many raised their eyebrows when they heard that. It’s a huge step forward in terms of ease of use. It’s a huge step up in terms of user-friendliness.”
