Polestar is going all in with its first electric crossover SUV, the Polestar 3, with plans to take on the established US core luxury market. With the Polestar 3 expected to arrive later this year, the company is confident it will hit its launch targets which will be accompanied by a massive new marketing campaign.
The EV maker, launched by Volvo and Geely, saw revenue surge by 84% to $2.5 billion in 2022 after beating its goal and delivering 51,491 vehicles.
After revealing its first fully electric car, the Polestar 2, in 2019 as a premium performance fastback set to compete with the Tesla Model 3, the brand has grown to become a real contender in the rapidly expanding EV era.
Since its launch in mid-2020, the Polestar 2 has become a top ten best-selling electric vehicle in several key markets, including the UK, Canada, South Korea, Sweden, Norway, and more.
Thomas Ingenlath, CEO of Polestar, expects the momentum to snowball in 2023 with an “exciting year” ahead. Polestar aims to deliver 80,000 vehicles this year, up around 60% from 2022.
A big reason for the enthusiasm is due to the company’s first electric luxury crossover, which Polestar calls the “SUV for the electric age.” The Polestar 3 features the brand’s signature minimalist Scandinavian design, improved aerodynamics for efficiency, and a powerful, wide SUV-like stance.
The EV marker unveiled the Polestar 3 in October as part of its new wave of electric vehicles, building upon the success established with the Polestar 2.
The Polestar 3 recently launched in China, but according to the Head of Polestar USA, Greg Hembrough, the company is planning a more aggressive launch in the US and Canada.
Polestar 3 luxury electric crossover North American launch
Speaking to Automotive News, Hembrough says Polestar will launch its electric SUV with a new $20 million marketing campaign in Q2.
The investment is more than Polestar has spent in the past nine months combined, topping what it dished out for last year’s Super Bowl.
According to Hembrough, North America, including the US and Canada, will be the Polestar 3s biggest market, representing roughly a quarter of global sales.
Although Polestar has achieved success with its electric sedan, the Polestar 3 will serve a bigger market. Hembrough forecasts premium midsize crossover sales to reach 625,000 in sales this year, compared to the US luxury sedan market with 379,000.
To ensure Polestar reaches the masses, the brand’s new marketing campaign will extend across digital, television, and outdoor advertising, beginning on April 4.
The Polestar 3 will ride on the same platform used for Volvo’s EX90 SUV, offering up to 300 miles range and 30 min fast charge capabilities for a starting price of around $85,000.
Hembrough says he is confident the Polestar 3 will hit its North American launch targets. Polestar will begin mass production at Volvo’s plant in Chengdu, China, around the middle of the year, with plans to produce the electric SUV at Polestar’s South Carolina plant in 2024.
He added the Polestar 3 will launch with a competitive lease offer and will qualify for up to $7,500 in commercial clean vehicle tax credits.
Polestar has several small retail locations in US cities and “Destinations” for suburban buyers, but the EV maker plans to stick to its mostly digital business model.
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