Polestar Targets Tesla Owners with Up to $20,000 Discounts on Polestar 3 Leases

Electric vehicle maker Polestar is offering lease discounts of up to $20,000 on its Polestar 3 model to current Tesla owners in the United States, as it seeks to capture market share from rivals amid sluggish EV demand and geopolitical uncertainties.

A fully equipped dual-motor long-range Polestar 3 can retail around $93,000, but with the incentive, Tesla owners could lease the vehicle for as little as $73,000, according to the company’s website. By comparison, a Tesla Model S starts at just under $80,000.

See also: Polestar 3 Earns Five-Star Safety Rating from Euro NCAP

“We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for the month of March. We are currently running a similar campaign for April,” a Polestar spokesperson told Reuters. The offer is valid for Polestar 3 units manufactured at Volvo Cars’ South Carolina plant.

Polestar joins a growing list of automakers offering aggressive incentives to attract buyers ahead of anticipated price hikes linked to new U.S. tariffs. Ford Motor and Stellantis have also launched deep discounts, while Hyundai has pledged to hold prices steady.

See also: Polestar Offers Same Lease Price for Polestar 2 and 3 Despite $8,600 Price Gap

Tesla’s share price has dropped 32% so far this year following disappointing sales figures and a surge in trade-ins, amid criticism surrounding CEO Elon Musk’s political affiliations and proposed government spending cuts.

“The numbers speak for themselves. This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible,” said Jordan Hofmann, Polestar’s head of sales in the U.S., in a LinkedIn post.

See also: Polestar Denies Exit from China Amid Restructuring Efforts

Polestar, backed by China’s Geely, is looking to increase its production footprint in the U.S. as part of a broader strategy to reduce reliance on China. The push has become more urgent after the Trump administration imposed sweeping tariffs on Chinese imports, including electric vehicles.

U.S. competitor Lucid is also offering up to $4,000 in incentives for buyers trading in Tesla vehicles for its Air luxury sedans.

Polestar underwent a leadership reshuffle last year and brought in a new CEO as it works to ramp up sales, manage cash flow, and move toward profitability.