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Polestar targets Tesla owners with big discount strategy

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Campaign may lure Tesla customers disgruntled with Musk

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Polestar 3 price drops to $73,000 for Tesla owners with

discount

By Zaheer Kachwala and Marie Mannes

April 10 (Reuters) - Polestar is offering

discounts of up to $20,000 towards a lease of its Polestar 3

vehicle for current Tesla owners in the United States,

as the Swedish EV maker targets drivers shunning CEO Elon Musk's

car brand.

The campaign on Polestar's website appears to be an attempt

by the company to lure disgruntled Tesla customers with the

discounts amid slower-than-expected EV demand and worries that

higher tariffs may raise vehicle prices.

A long range, dual motor Polestar 3 with all the upgrade

packs would cost around $93,000, the website says, but for Tesla

owners using the discounts, the price would sink to $73,000. A

Tesla Model S starts at just under $80,000.

"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

spokesperson of Polestar told Reuters.

The offer is valid for its Polestar 3, which is produced in

a Volvo Cars factory in South Carolina.

Tesla's stock has dropped 32% so far this year from poor

sales and record Tesla trade-ins amid criticism of Musk due to

the billionaire's controversial role in the Trump administration

as he works to slash federal government spending.

POTENTIAL PRICE RISE

Polestar joins a throng of automakers scrambling for market

share as shoppers in the U.S. and beyond scour dealer lots to

try to snap up a car purchase before any potential rise in

prices from the higher U.S. tariffs.

Ford Motor ( F ) and Stellantis ( STLA ) offered deep

discounts starting this month, and Hyundai committed to keeping

prices stable.

Polestar has been trying to expand its production base in

the United States and reduce dependence on China - a strategy

more significant now after U.S. President Donald Trump imposed

sweeping tariffs on the world's largest auto market.

Indeed, both U.S. and other automakers are trying to enhance

their manufacturing footprint. General Motors ( GM ) last week told

workers it would increase output at a factory in Indiana, and

Hyundai committed to a $21 billion investment in the U.S.

Polestar said earlier campaigns had been positive.

"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," Jordan Hofmann, Polestar's

head of sales in the U.S., said in a LinkedIn post a month ago.

The company did not provide additional details or quantify

the impact of the previous promotion.

U.S. EV maker Lucid also hopped on the trend,

offering discounts of up to $4,000 for purchases of its luxury

Air sedans if a customer trades in a Tesla vehicle.

For Polestar, backed by China's Geely, boosting

sales is crucial as it burns through cash to hike production.

Last year, it underwent an executive shakeup and appointed a

new CEO with the aim of getting closer to profitability, raising

sales and securing a steady line of funding.