Swedish electric automaker, Polestar (PSNY) officially launched their Polestar 3 electric SUV in China on Friday. However, the EV maker has slashed its starting price by roughly $29,000.
When the Polestar 3 was first advertised to Chinese consumers at its global reveal event, it had a starting price of 880,000 yuan ($127,756), almost twice the NIO ES7's starting price of 468,000 yuan, placing it firmly within the luxury segment. The Polestar 3 now starts at 698,000 ($101,333), and the performance model starts at 789,000 yuan ($114,544), a 182,000 yuan ($26,422) and a 232,000 yuan ($33,681) price cut, respectively.
Polestar did not give a reason for the price cuts but presumably they were done so the 3 would be more competitive with rivals. Interestingly, the price reduction comes just a few weeks after Polestar CEO Thomas Ingenlath stated the brand would not engage in price wars.
Polestar expects to begin production at its Chinese factory in the middle of this year, with deliveries starting at the end of the year. The Polestar 3 will also be produced at a shared production facility with Volvo in South Carolina, starting mid-2024, and deliveries will follow shortly afterward.
It remains unclear if Polestar intends to use this new pricing in the United States. However, with a new starting price of ~$114,000, it would be price competitive with the likes of Tesla (TSLA) and Rivian (RIVN).
Shares of PSNY are down 4.17% in afternoon trading on Monday.
By Michael Elkins | Michael.Elkins@streetinsider.com