Benzinga - by Anan Ashraf, Benzinga Editor.
Swedish electric car brand Polestar Automotive Holding UK PLC (NASDAQ:PSNY) on Wednesday lowered the starting price for its Polestar 3 SUV in the U.S. by about 13% in a bid to drive demand.
What Happened: According to the company website, the vehicle now has a starting price of $73,400 for its long-range dual motor version, marking a 12.5% drop from the original starting price of $83,900. The Long-range dual motor version with a performance pack now starts at $79,400.
The Polestar 3 is now at the lower end of the premium SUV market. While Rivian Automotive’s R1S SUV starts at $74,900 in the U.S., Tesla’s premium Model X SUV starts at $79,990.
Deliveries of the vehicle, which Polestar claims to have the performance of a sports car within an SUV, are set to start in the second quarter of this year. Late last month, company CEO Thomas Ingenlath said that the company has started the production of the Polestar 3 in Chengdu, China. Test production runs at the American factory in South Carolina have already been completed, he added.
Why It Matters: Polestar delivered 54,600 cars last year, falling short of its 60,000 delivery target. Though it was expected to release the financial results of the year in late February, the company postponed it.
In January, the company CEO shared his positive outlook for the company's 2024 sales in an interview with Reuters.
"The end of '23 was a particularly tough situation where the competition has gone to discounts at a level which we just simply said no to," Ingenlath explained. However, premium brand consumers are less price sensitive, he then said.
For the third quarter, Polestar reported an operating loss of $261.2 million as compared to a loss of $196.4 million in the corresponding quarter of 2022. Revenue, however, rose 41% to $613.2 million.
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