Swedish luxury electric vehicle (EV) maker Polestar has announced plans to shift production to Europe, citing the impact of U.S. import tariffs and global trade tensions. Michael Lohscheller, CEO of Polestar, explained that the U.S. tariff measures are driving up costs and disrupting global supply chains. This has increased their need to manufacture their products in Europe to address these challenges.
Polestar reported a substantial increase in sales for the first quarter with 12,304 units sold, representing a 76% jump compared to the same period last year. Industry analysts attribute this growth to competitive pricing strategies and targeted marketing campaigns in a fiercely competitive market.
Currently, Polestar manufactures Polestar 2 and Polestar 4 models in China. The company has suspended orders for Chinese-made models in the U.S. market. Production of the Polestar 4 is set to begin at the company’s South Korean facility in the latter half of the year, with plans to export to the U.S. However, these models may still face U.S. tariff implications.
In response to these global trade challenges, Polestar is actively pursuing expanded production in Europe. The company currently produces the Polestar 3 model at a manufacturing facility in South Carolina.
