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  • Polestar hands over first customer Polestar 3 electric SUVs

    Polestar hands over first customer Polestar 3 electric SUVs

    Swedish automaker Polestar has finally started the global customer deliveries of the first Polestar 3 electric SUVs.

    Polestar begins deliveries of its flagship SUV

    According to the press release, Polestar has officially kicked off the initial customer deliveries of its new electric SUV offering – Polestar 3.

    The launch of the Polestar 3 marks a significant advancement for the company as it serves as the third model in its electric vehicle portfolio.

    Polestar kicked off the Polestar 3 electric SUV’s global customer deliveries on two continents, gradually accelerating throughout the summer. Positive reviews from auto journalists have stimulated high customer demand, with the initial test drive slots getting booked up fast.  

    The first lucky customers received their Polestar 3 in a special ceremony at the company’s Gothenburg headquarters in Sweden. These initial deliveries included launch edition Polestar 3 units in Magnesium and Space colors, along with a special gift package to commemorate the event.

    “This is an important milestone – first deliveries of Polestar 3 to our customers. Test drives start at all Polestar Spaces this coming weekend in Europe. Thousands of hand-raisers are invited to experience our great, luxurious performance SUV. Polestar is becoming a global player with the most attractive electric product range.”

    Polestar CEO Thomas Ingenlath

    Key specifications

    Presented below are the key specifications of the 2025 Polestar 3 per trim:

    2025 Polestar 3 trimEstimated EPA range (Combined)PowerTorquePrice
    Long Range Dual Motor with Pilot Pack315 miles489 hp620 lb-ft$73,400
    Long Range Dual Motor with Pilot Pack and Plus Pack315 miles489 hp620 lb-ft$78,900
    Long Range Dual Motor with Pilot and Performance Pack279 miles517 hp671 lb-ft$79,400
    Long Range Dual Motor with Pilot, Plus, and Performance Pack279 miles517 hp671 lb-ft$84,900
    *excluding $1,400 destination fee

    Looking forward

    Polestar plans to intensify its ongoing customer delivery push for the new electric SUV across the world by holding the same local handover ceremonies.

    More deliveries will occur in the German and Norwegian markets on June 28, 2024. In the US, the company’s North American team is already delivering the first Polestar 3 units in California, Illinois, Indiana, and New York.

    “We always knew the Polestar 3 was going to be popular, but even we were blown away by the global media’s reviews and the response to opening up test drive bookings. It’s testament to the excitement in the market for this car and customer interest to get behind the wheel of our flagship electric SUV.”

    Kristian Elvefors, Global Head of Commercial at Polestar

    Polestar is also set to launch the first production line of the Polestar 3 in the US in the summer, potentially enabling it to access the federal tax credits under the Inflation Reduction Act.

    Polestar also introduced a new  Long Range Single Motor Polestar 3 trim on Thursday as the first models reach customers. It starts at $85,500 (€79,890), including the handover fee. It is currently only available in the European market, while North America and Australia will follow later this year. Notably, it features the same 111 kWh battery, delivering up to 404 miles (650 km) WLTP-rated range.

  • Polestar revs up expansion with 7 new markets in 2025

    Polestar revs up expansion with 7 new markets in 2025

    Swedish automaker Polestar has just announced plans to penetrate seven new markets across the world in 2025 as part of its electric vehicle expansion push.

    Polestar accelerates expansion push

    Polestar outlined its plans to launch its electric vehicle models in seven new markets in Europe, Asia, and South America, in a press release on June 13, 2024.

    The Volvo- and Geely-owned electric automaker aims to leverage its local distribution partnerships to sell its electric vehicle offerings in France, Czech Republic, Slovakia, Hungary, Poland, Thailand, and Brazil.

    “Expanding our retail operations with new and existing partners will enable us to reach more customers. Through these partnerships and expansion, we will capitalise on our strong brand and growing model lineup.”

    Polestar CEO Thomas Ingenlath

    As of today, Polestar EVs are available in 27 markets globally.

    Polestar also disclosed plans to expand its retail footprint through its distribution partnerships, following its pivot to a non-genuine agency sales model in the Swedish and Norwegian markets earlier this month. It will allow prospective buyers to shop for Polestar EVs through a traditional approach.

    Reorganization

    Polestar also initiated a company reorganization with the appointment of numerous employees for new management positions.

    For instance, Anders Gustafsson replaced Gregor Hembrough as Head of North America. Meanwhile, Matt Galvin succeeded Jonathan Goodman as UK Managing Director.

    Moreover, Marius Hayler will substitute Alexander Hørthe as the sales leader in Norway and other nearby nations.

    “I am delighted to welcome this group of talented and experienced leaders to the Polestar team. Through these appointments, we are strengthening our sales teams and bringing in additional expertise at a pivotal point in our development, as our model lineup expands to include two new SUVs.”

    Kristian Elvefors, Polestar Head of Commercial

    Polestar’s EV lineup

    Polestar aims to launch five performance electric cars by 2026. It launched the Polestar 2 electric hatchback in 2019.

    The Polestar 3 electric SUV hit the market in late 2022. The Polestar 4 SUV followed in multiple phases during 2023 and 2024.

    The Polestar 5 electric four-door GT and the Polestar 6 electric roadster will soon become available for sale. Meanwhile, the Polestar 0 project outlines the brand’s ambition to develop a climate-neutral production car by 2030.

    Polestar is also set to gain access to Tesla’s enormous Supercharger network in North America through NACS. However, recent layoffs that affected the Supercharger team apparently delayed Polestar EVs’ access to the Musk-led company’s charging network.

  • Tesla Supercharger network access for GM, Polestar delayed due to layoffs

    Tesla Supercharger network access for GM, Polestar delayed due to layoffs

    Tesla’s original plan to open its industry-leading charging network in North America for other electric vehicles has encountered delays due to the recent layoffs that have affected the entire Supercharging team, according to Quartz.

    Tesla layoffs hit Polestar, GM charging plans

    General Motors, Polestar, and Volvo were on track to gain access to the robust Tesla Supercharger network in North America this Spring.

    A total of 15,000 Supercharger stalls will supposedly accommodate non-Tesla electric vehicles, making charging sessions more convenient for EV drivers across the US and Canada.

    However, the Musk-led company suddenly dismissed its entire Supercharging team, including its Senior Director of Charging Infrastructure, Rebecca Tinucci, earlier this year. The move is part of the wider layoff push that affected 10% of Tesla’s global workforce to help sustain cash.

    In effect, the sudden reorganization reportedly affected the plans of several of Tesla’s NACS partners. Some of them were pushed to delay their anticipated access to Tesla’s charging network.

    According to PC Mag, GM and Polestar confirmed they postponed their originally planned acquisition of NACS adapters from Spring to Summer. Meanwhile, Volvo has yet to confirm the news.

    Tesla backtracks from the layoffs

    Tesla has recently hired back some employees of the approximately 500 Supercharger team members CEO Elon Musk laid off in late April 2024.

    While the total number of rehired Supercharger team members remains vague, Max de Zegher confirmed his return to Tesla as the North American Charging Director.

    https://twitter.com/pablo9948967714/status/1790066740581355666

    George Bahadue also announced his come back as the company’s Sr. Manager of Site Acquisition and Business Development for Commercial Charging on the social networking website LinkedIn.

    “Two weeks ago, I was asked to return to Tesla in my previous capacity heading up business development and site acquisition for Tesla charging – I accepted.”

    George Bahadue, Tesla Supercharger Manager

    Moreover, CEO Elon Musk also reiterated plans to continue expanding the Supercharger network. However, it will apparently observe a slower pace than planned.

    “Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.”

    Tesla CEO Elon Musk

    The Tesla boss’ decision to lay off the Supercharger team seems a wrong idea, considering how it impeded the wider adoption of NACS in the region. It also compromised the plans of its partners, potentially disappointing their current and future customers.

    As of now, only Ford and Rivian have gained access to Tesla’s Supercharger network through NACS adapters.

    Considering GM and Polestar’s confirmation of delayed access, all other OEMs in line behind will certainly encounter similar delays. For context, the order in which automakers signed up for the Supercharger network will likely determine the order in which they gain access to the network.

  • Polestar 5 prototype charges 10%-80% in 10 minutes at over 370 kW with StoreDot’s XFC tech 

    Polestar 5 prototype charges 10%-80% in 10 minutes at over 370 kW with StoreDot’s XFC tech 

    Israeli li-ion battery company StoreDot and Swedish automaker Polestar have just exhibited an innovative extreme fast charging (XFC)  battery tech that enables a 10-minute electric vehicle charging.

    StoreDot & Polestar deliver world’s first EV 10-min charge 

    According to the press release, Polestar and StoreDot successfully charged the Polestar 5 prototype’s 77kWh battery pack equipped with the XFC high energy (300Wh/kg) silicon-dominant battery cells from 10%-80% in just below 10 minutes.

    It reportedly yielded a consistent charge rate of more than 310kW and a peak of over 370kW during the testing. Impressively, the battery pack did not transcend the target operation temperatures the companies’ engineers set.

    This groundbreaking initiative demonstrated StoreDot XFC battery tech’s drop-in ability, allowing seamless integration in an electric vehicle. It also enables extreme fast charging with existing charging infrastructure instead of proprietary chargers.

    “By eliminating charging times that were previously an obstacle, StoreDot’s XFC battery cells combined with our cutting-edge product development and battery engineering have unlocked new frontiers for electric mobility.”

    Polestar CEO

    Silicon-based anode vs. Conventional graphite anodes

    StoreDot’s silicon-based anode technology offers a significant advantage for electric vehicles using its battery tech. 

    For context, silicon-based anode tech can continuously improve energy density and charging rate for some more battery generations. 

    On the other hand, conventional graphite anodes cannot support any more improvements because they are already entering their performance limits.

    That said, StoreDot’s groundbreaking silicon structure enables continuous innovation in key areas, such as extreme fast charging.

    “With our extreme fast charging technology, you can add 200 miles in under 10 minutes. This breakthrough revolutionizes EV ownership experience by eradicating the barrier of range and charging anxiety once and for all. Drivers can now truly travel long distances with the same freedom and convenience as traditional petrol-powered vehicles.”

    StoreDot CEO Dr. Doron Myersdorf,

    About Polestar 5 

    The Polestar 5 prototype is the first electric vehicle model to test StoreDot’s XFC battery technology.

    The Polestar 5 electric sedan will serve as the brand’s fifth EV offering when it hits the market. Polestar derived the model from the Precept concept, proving that the automaker is among the few that really uses its concepts to develop production models.

    In hindsight, Polestar formally debuted the model’s production prototype version in late 2021. It featured carriage doors and a “Smart Zone” grille with numerous ADAS sensors. A camouflaged prototype appeared at the Goodwood Festival of Speed in July last year. It touted an output of 884 horsepower and 800V architecture to enable extreme fast charging speeds.

    The remarkable results of StoreDot and Polestar’s testing signify another advancement on the XFC battery’s route toward commercialization. It showcases the technology’s maturity, durability, and stability, potentially accelerating the adoption of electric vehicles.

  • Polestar 4 electric SUV to challenge the Tesla Model Y with a base price of $56,300 in the US 

    Polestar 4 electric SUV to challenge the Tesla Model Y with a base price of $56,300 in the US 

    Swedish automaker Polestar finally unveiled its new electric SUV, Polestar 4, at the 2024 New York International Auto Show on Wednesday. 

    In hindsight, Chief Executive Thomas Ingenlath previously claimed that the new Polestar 4 would arrive as a “more premium, more luxurious” SUV than the Tesla Model Y.

    Polestar announces the pricing of the new Polestar 4 electric SUV

    During the Polestar 4’s North American debut, the company took the opportunity to release the pricing of the new electric SUV. 

    The Polestar 4 will have a base price of $56,300 (including a $1,400 destination fee), according to its official online configurator. Meanwhile, the higher trim Long Range Dual Motor will be more expensive at $64,300. Availing the Plus and Performance packs will cost another $10,000. Refer to the table below:

    Polestar 4 trimStarting Price
    (including $1,400
    destination fee)    		Range
    (expected EPA-est)
    Long Range Single Motor$56,300300 mi
    Long Range Dual Motor$64,300270 mi
    Long Range Dual Motor model
    (with Plus and Performance packs)    		$74,300270 mi

    Design

    Polestar’s newest electric SUV offering, Polestar 4, features a distinctive design as it has no rear window. Instead, it has a rear-facing HD camera that “enhances interior space and the rearward view.”

    Inside, it offers a 15.4-inch infotainment run by Android Auto OS (Operating System) with built-in Google. It also has another 10.2-inch driver display behindthe steering wheel.

    It also offers upholstery material options, including the following:

    • Perforated Nappa leather (with Nappa upgrade)
    • Tailored Knit (with Plus pack) 
    • Bio-attributed MicroTech

    Key specs

    Presented below are the key specifications of the new Polestar 4:

     Long range Single motorLong range Dual motor
    Motor One 200 kW permanent magnetic motor Liquid coolingMotorTwo 200 kW permanent magnetic motors Liquid cooling
    Drivetrain Rear-wheel driveDrivetrainAll-wheel drive
    Power¹ 200 kW / 272 hpPower¹400 kW / 544 hp
    Torque¹ 253 lb-ftTorque¹506 lb-ft
    0-60 mph¹ 6.9 seconds0-60 mph¹3.7 seconds
    Top speed¹ 124 mphTop speed¹124 mph
    Range target (EPA)² 300 milesRange target (EPA)²270 miles
    Energy consumption (EPA)² ~35 kWh/100 miEnergy consumption (EPA)²~39 kWh/100 mi
    Towing power Up to 2000 lbsTowing powerUp to 3,500 lbs
    Battery 400-V Lithium-ion battery 100 kWh capacity, cell-to-pack, 110 cellsBattery400-V Lithium-ion battery 100 kWh capacity, cell-to-pack, 110 cells

    Source: Polestar

    Polestar already launched the new electric SUV in the European and Australian markets earlier this year. Finally, Polestar is on track to bring the Polestar 4 to the US market. The Swedish automaker plans to start accepting orders for the Polestar 4 in April 2024, with deliveries following by the end of the year.

  • Polestar gains access to Tesla charging network in China

    Polestar gains access to Tesla charging network in China

    Swedish automaker Polestar tapped America’s electric vehicle giant Tesla as it seeks to join its enormous and reliable charging network in China, according to its Weibo announcement on March 20.

    Polestar EVs can now use Tesla Superchargers in China

    Polestar officially announced on Wednesday that its electric vehicle owners can finally access Tesla’s Supercharger and Destination Charger stations in mainland China.

    “…It turned out that Polestar joined hands with Tesla China to start charging network sharing. You can log in to the Polestar app to charge at Tesla’s Supercharger and destination charging stations in Chinese mainland, and enjoy a convenient and worry-free travel experience such as fast energy replenishment and on-the-go charging.”

    Polestar announcement on Weibo (Translated to English)

    As mentioned in the announcement, Chinese-based Polestar owners can simply use the Polestar app to locate and use Tesla’s charging network.

    This newly formed partnership comes amid the growing trend among electric automakers planning to leverage competitive charging access to improve ownership experience.

    Tesla Supercharger expansion

    Tesla continues to progress in its strategy to expand the reach of its reputable Supercharger network to all electric vehicle models regardless of brand, especially in the United States. 

    EV-a2z previously reported that Ford F-150 Lightning and Mustang Mach-E finally gained access to Tesla’s Supercharger network in late February, followed by startup Rivian this week.

    In that sense, the Musk-led company has already updated its website to add a new “Charging for All” page. It currently lists Ford and Rivian under the “Supported” category, while General Motors, Volvo, and Polestar, are under the “Coming Spring 2024.”

    Polestar 3 production start in China

    This significant development apparently emerged following Polestar’s production commencement of the new Polestar 3 in China in February. It will join the Swedish brand’s current lineup, which consists of the Polestar 2 and Polestar 4.

    “This stunning car takes a significant step forward with start of production marking an important milestone on our journey from a one to three car company.”

    CEO Thomas Ingenlath 

    For context, the Polestar 3 electric SUV is already available in the US market with a Manufacturer Suggested Retail Price (MSRP) of $73,400. It rides on the same platform as the Volvo EX90. It comes with two variants, including the Long Range and Long Range Performance. Refer to the table below for the key specifications of the Polestar 3 in the US:

     Long range Dual motorLong range Dual motor with Performance pack
    Starting price  $73,400 MSRP$79,400 MSRP
    Motor  Two 180 kW permanent magnetic motors Liquid cooling True torque vectoring on rear axle Rear motor disconnect clutchTwo 180 kW permanent magnetic motors Liquid cooling True torque vectoring on rear axle Rear motor disconnect clutch Performance software upgrade, boosting power with 380 kW/ 517 hp and torque with 671 lb-ft
    Drivetrain  All-wheel driveAll-wheel drive
    Power¹  360 kW / 489 hp380 kW / 517 hp
    Torque¹  620 lb-ft671 lb-ft
    0–60 mph¹  4.8 seconds4.5 seconds
    Top speed¹  130 mph130 mph
    Range up to (EPA)¹ ²  315 mi279 mi
    Energy consumption¹  38 kWh/100 mi44 kWh/100 mi
    Towing capacity  Up to 3,500 lbsUp to 3,500 lbs
    Battery  400 V lithium-ion battery, 111 kWh capacity, 17 modules400 V lithium-ion battery, 111 kWh capacity, 17 modules
    Source: Polestar
  • Polestar 3 gets $10,500 price cut ahead of market launch in the US

    Polestar 3 gets $10,500 price cut ahead of market launch in the US

    Swedish automaker Polestar has just announced the updated pricing of the 2025 Polestar 3 electric SUV, with additional variants now available at a lower price.

    The move is indeed intriguing, considering that the new Polestar 3 electric SUV has not even launched in the United States yet.

    Original pricing

    Polestar originally announced that the 2025 Polestar 3 would start at $83,900 ($89,900 for the Performance Pack version), excluding a $1,400 destination charge. 

    In a significant development, the company decided to reduce the prices by $10,500.

    Updated pricing and key specs

    Polestar unveiled the four configurations of the 2025 Polestar 3. The base Polestar 3 Long Range (LR) Dual Motor (DM) starts at $73,400 MSRP (plus $1,400 DST). While the Plus Pack is no longer standard, it will come standard with the Pilot Pack, which offers the following features:

    • Pilot Assist driver assistance aids
    • Park Assist Pilot
    • Lane Change Assist
    • Head-up Display

    Interested customers must pay $5,500 more ($78,900 + DST) to gain access to the model’s Plus Pack, indicating an effective price cut of $5,000. For context, the Plus Pack offers the following:

    • A 1,610-watt Bowers & Wilkins premium audio system
    • Bio-attributed MicroTech or animal welfare wool seats
    • 21-inch Plus wheels and heated rear seats

    Meanwhile, the Performance Pack costs $6,000 more ($79,400 + DST) for the LR DM Performance. It offers the following features:

    • Engineered chassis tuning
    • 22-inch Performance forged wheels
    • A software performance upgrade that boosts output to 517 hp and 671 lb.-ft. of torque
    • A 0-60 mph sprint of 4.6 seconds 
    • Swedish gold accents, including the seat belts

    Buyers who still want the Plus Pack must pay an additional $5,500 ($84,900 + DST). For this amount, future owners can have the fully-loaded Polestar 3 Long Range Dual motor with Pilot Pack, Plus Pack, and Performance Pack. 

    Refer to the table below:

    VariantDrivetrainBattery capacityMax charging speed, DCEstimated EPA rangeCombined PowerTorque0-60 mphPrice
    Long Range Dual Motor w/ Pilot PackAWD111 kWh250 kW315 miles489 hp620 lb-ft5.0s$73,400
    Long Range Dual Motor w/ Pilot and Plus PackAWD111 kWh250 kW315 miles489 hp620 lb-ft5.0s$78,900
    Long Range Dual Motor w/ Pilot and Performance PackAWD111 kWh250 kW279 miles517 hp671 lb-ft4.7s$79,400
    Long Range Dual Motor w/ Pilot, Plus and Performance PackAWD111 kWh250 kW279 miles517 hp671 lb-ft4.7s$84,900

    Production schedule

    Polestar plans to officially start the deliveries of the 2025 Polestar 3 in the second quarter of the year. For now, the Swedish automaker is encouraging interested customers to configure their Polestar 3 on the official website.

    Polestar recently kicked off the series production of the new Polestar 3 in Chengdu, China. It plans to start local production in late 2024. The company will apparently produce the electric SUV in South Carolina for the American market. 

    Given that Polestar will initially import the Polestar 3 from Chengdu, it will not qualify for the US federal tax credit of up to $7,500. Nonetheless, it can still benefit from the Polestar Clean Vehicle Incentive, which is worth $7,500 through leasing.

  • Polestar CEO warns rivals of falling into an “incredible trap” as they scale back electrification push

    Polestar CEO warns rivals of falling into an “incredible trap” as they scale back electrification push

    Swedish automaker Polestar strongly emphasized its commitment to having an all-electric future with the recent remarks of Chief Executive Thomas Ingenlath about the other players’ decision to delay their electric vehicle push.

    Polestar CEO reportedly said that industry players who decided to delay or cancel their electrification strategy are falling into a “trap,” The Telegraph reported.

    Expansion plans

    Chief Ingenlath’s comments come after Polestar raised $1 billion in funding from banks, potentially serving as its ultimate lifeline. For context, its former parent company, Volvo, announced plans to halt financial support after the brand missed targets and suffered from a share price decline.

    Nonetheless, Polestar remains committed to expanding its reach with its two new high-margin electric SUVs, including the Polestar 3 and 4. Both models will reportedly launch in the brand’s key markets in 2024. 

    The Polestar 4 started accepting orders in the European and Australian markets in February, while the Polestar 3 started production in China last week.

    Polestar is optimistic that the fresh funding will enable the company to reach “volume growth that supports the 2025 volume target and double-digit gross profit margin.”

    Polestar boss’ warning

    While Polestar strives to succeed in the electric vehicle industry, other players decided to scale back their electric vehicle targets primarily due to the “slower than expected uptake.”

    For context, Mercedes-Benz canceled plans to become an all-electric brand, involving the subsequent launch of electric-only platforms from 2025 onwards. Due to the market condition, the German company decided to continue building gas-powered vehicles “well into the 2030s.”

    Apart from Mercedes-Benz, Ford, Aston Martin, and General Motors have also announced a similar move.

    In response, CEO Ingenlath said these automakers risk being left behind in the electric vehicle shift, citing the intricate process of rolling out new EVs.

    “There’s an incredible threat and danger if you don’t embrace future innovation and believe in that technology – the electric drivetrains, the innovation in battery, the innovation in modern electronics and software. If you don’t participate in that and think you can wait, and customers are ready for it, it’s an incredible trap.”

    Polestar CEO Thomas Ingenlath 

    Nonetheless, the Polestar boss noted that the move of other automakers is an ” incredible opportunity” for the company.

    “In that sector of premium performance cars, there is indeed not that much competition coming.”

    Polestar CEO Thomas Ingenlath 

    Fear of change

    When asked about the potential reason behind the waning demand for electric vehicles, CEO Ingenlath explained that people’s fear of change plays a more significant role than economic pressures.

    “To tell you the truth, I think that [it is about] being open for innovation and the future technology. I see far too many people hesitating with that and being scared of change. That is just not a good recipe for the future.”

    Polestar CEO Thomas Ingenlath 

    CEO Ingenlath’s explanation makes sense, considering how people delay their transition to electric vehicles while waiting for future technology upgrades. Apart from this, the lack of more affordable models in the market also significantly impedes the wider shift to electric mobility.

    Despite the intensifying market challenges, Polestar remains committed to achieving its goal of launching a five-performance electric vehicle portfolio as early as 2026.

  • 20 Electric Vehicles with the Fastest Charging Times

    20 Electric Vehicles with the Fastest Charging Times

    Explore a range of options for quick charging with our list of fastest-charging electric vehicles of 2024

    EV MODELAC CHARGE RATE (KW)AC CHARGE RATE (MPH)DC FASTCHARGE RATE (KW)DC FASTCHARGE RATE (MPH)0-80% DC CHARGE TIME (min)**
    Genesis Electrified GV70 & GV60112735053018
    Hyundai IONIQ 5 Long Range 2WD113135058018
    Kia EV6 Long Range 2WD113235065016
    Lucid Air Pure19.257.635052020
    Mercedes EQS113435059031
    Audi e-tron GT quattro112927064021
    Porsche Taycan Plus223327065021
    Porsche Taycan Turbo & Turbo S19.23027066022.5
    Tesla Model 3 Long Range & Performance113425052025
    Tesla Model S Long Range & Plaid113425048027
    Tesla Model Y Long Range & Performance113425037023
    BMW i4 M501131200370 
    Mercedes EQS 580 4MATIC2233200490 
    BMW iX xDrive50 & xDrive401134.515042030
    Ford Mustang Mach-E GT11.53415038038
    Polestar 2 Long Range Single Motor1133150340 
    Volkswagen ID.4113313540038
    Volvo C40 Recharge113313031028
    CUPRA Born1135100300 
    Volkswagen ID.3 Pro Performance1135100300 
    JDPower, FleetNewsUK
  • Hertz suspends EV purchase plans from Polestar this year

    Hertz suspends EV purchase plans from Polestar this year

    American car rental firm Hertz decided to shelve its previous plans to acquire tens of thousands of all-electric vehicles from Swedish partner Polestar in 2024, Financial Times reports.

    The move is apparently a result of the substantial decline in the resale value of electric vehicles in 2023, prompting the rental giant to scale back in its electrification push.

    Original agreement

    Hertz committed to purchasing 65,000 electric vehicles from Polestar within five years under a 2022 agreement, indicating an estimated investment of $3 billion. 

    Notably, Polestar already supplied approximately 13,000 BEVs to Hertz.

    It is a significant part of the car rental giant’s goals to have electric vehicles account for a quarter of its overall fleet by 2024. Apart from Polestar, Hertz also agreed to purchase 100,000 EVs from industry leader Tesla.

    Plan changes

    Unfortunately, the resale value of electric vehicles suffered a substantial decline in late 2023. In addition, repair costs surged higher than expected. 

    These two major factors pressed Hertz to sell Tesla cars in its car rental fleet, making it impossible for the company to achieve its 25% EV target.

    https://twitter.com/narcitopia/status/1745603892036157678

    Now, Hertz has also decided to cancel its plans to buy Polestar EVs this year. Polestar CEO Thomas Ingenlath reportedly received Hertz CEO Stephen Scherr’s inquiry last autumn about whether it is possible to pause their purchase deal throughout this year.

    Polestar compromised to grant Hertz’s request to pause the original purchase agreement this year. However, it demanded the car rental company avoid selling its currently owned Polestar EVs “early or too cheaply.”

    Hertz must “keep the cars longer than a year, we work with them, and we have the right to first refusal whenever they want to take them out of the fleet,” Polestar CEO Thomas Ingenlath noted.

    EV growth

    Hertz’s move to step back in its electrification initiatives may be seen as an indicator of waning demand for electric vehicles. 

    However, the EV market actually continues to grow. In the US, plug-in vehicle sales hit a new record of more than 1 million units last year. Its market share also increased year-on-year from 6% to sub-8% in 2023, Kelley Blue Book‘s data revealed.

    It is just that several automakers went overboard with their EV investments, while demand slightly waned compared to its levels a few years ago. It resulted in companies pausing or withdrawing from their EV plans, like Hertz.

    Despite the plan changes, there remains to be a “clear intention” to resume the purchase deal in the future. However, Polestar and Hertz still need to review at the time if they can restart transactions in earnest in 2025.