Polestar Eyes Porsche-Like Pricing, Promises Three New Vehicles by 2025

Polestar 3 Teaser
The Polestar 3 will be fully revealed in 2022. Polestar

Polestar is setting new sales and manufacturing goals as it looks to enlarge its market share in the expanding electric vehicle (EV) space.

The EV manufacturer is owned by Volvo, which traces its history back to 1927. The modern version of Polestar started in 2015 when Volvo acquired controlling interest of the company. That partnership has lead to a new sales strategy for Volvo and Polestar, with the parent heavily influencing the child and the apple only falling as far from the tree as is necessary.

A new Polestar was launched in October 2017 and by the end of the following year they had established a headquarters, recruited key team members, and found investors. Company leaders spent 2019 preparing to launch the company with Polestar 1 manufacturing set to begin and the debut of Polestar 2 imminent.

Then, the COVID-19 pandemic hit.

The company pressed on, debuting the Polestar Precept, opening showrooms and planning for the future. There are 30,000 customers already driving Polestars worldwide.

The automaker says that it expects electric vehicles to go from a 4 percent share of the global vehicle market in 2021 to a 20 percent share by 2025.

Polestar 3, 4, 5
Polestar will launch three new vehicles by 2025. Polestar

In a presentation this week, CFO Johan Malmqvist told investors, brand enthusiasts and assembled media that the company expects sales volumes to increase to 290,000 units by that year, resulting in nearly $18 billion in revenue and a double digit profit margin.

If Polestar hits that sales target, by their projections, they will be capturing 6 percent of the sales in the global EV market space by 2025.

That growth is heavily reliant on the technology and manufacturing already in place from Volvo and its owner Geely.

Polestar is enabled within that company structure to have the agility of a startup with the ability to quickly scale production and use established supplier and manufacturing channels to maximize its potential.

This is most apparent in the announcement that the forthcoming Polestar 3 will be manufactured for North American customers at the same South Carolina plant where the Volvo XC90 is currently made. Additional models will be manufactured in China where Polestar manufacturing facilities already exist.

Maximizing the potential of the company's growing portfolio and monetizing bespoke technology play an important part of the profitability mix of Polestar, the company says. Some of this can be done with purchased performance packages, which are deliverable via over-the-air update and require no equipment changeouts.

Polestar 3, 4, 5
Polestar will launch three new vehicles by 2025. Polestar

Polestar 3, a luxury aerodynamics-focused SUV will be unveiled in 2022. A premium sport SUV named Polestar 4 is slated for early 2023 and will be joined by the Polestar 5 luxury sport GT, which is based on the Precept, in early 2024.

Polestar is clearly targeting Porsche has a rival, spelling out in the investor presentation that the Polestar 3 will be priced to complete with the Porsche Cayenne while the Polestar 4 and 5 will be priced to compete with the Macan and Panamera.

Polestar 3, 4 and 5 are expected to have all-electric ranges of over 372 miles per charge.