Polestar, the electric performance carmaker, has faced challenges in recent months, including disappointing performance and the announcement by parent company Volvo Cars that it would cease financial support. However, CEO Thomas Ingenlath remains optimistic about the company’s future, claiming it is in a better position than it may seem.
Ingenlath’s optimism comes at a time when the global electric vehicle (EV) market has not seen the significant growth of previous years, leading some automakers to reverse their commitments to fully transition to EVs. Ingenlath warned against this approach, calling it an “incredible trap” to ignore future innovation in electric drivetrains, batteries, and software.
See also: Polestar Start Production of Polestar 3 in Chengdu, US Production to Follow in Middle 2024
He sees an opportunity for Polestar in this landscape, as the company remains fully committed to EVs. With traditional automakers hesitating, Polestar aims to fill the gap in the premium performance car sector. Ingenlath believes that Polestar’s affluent clientele, who appreciate the innovation and performance of electric drivetrains, are less affected by economic factors than mainstream customers targeted by Tesla.
“In that sector of premium performance cars, there is indeed not that much competition coming,” said Ingenlath. “I definitely think that is where you have customers who very much embrace the innovation and the greatness of the electric drivetrain, especially in this very high-end premium, exclusive sector.”
See also: Polestar Unveils Innovative Digital Rearview Mirror in the Polestar 4 Crossover
Despite this, Polestar has faced challenges in meeting its sales targets, unlike Tesla, which saw success with its Model Y in 2023. Polestar’s manufacturing decisions, initially focused in China, now pose a vulnerability as regulations in Europe and the U.S. could disadvantage vehicles manufactured there.
“With all the regulations coming out in Europe and the U.S., there’s obviously a certain risk attached to that,” Ingenlath said. “We need to see where that leads.”
See also: Polestar’s Smartphone Listed on Google Play Store Compatibility List
To address these challenges, Polestar has expanded its production to Korea and the U.S. and secured a $1 billion funding package. This funding, coupled with its focus on innovation and the premium EV sector, gives Polestar hope for the future, as it seeks to capitalize on the shifts in the automotive industry.
“We are in a better position than it looks from the outside,” Ingenlath said. “We are confident in our strategy and our product.”
