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.
