Polestar emerged as a car manufacturer characterized less by its ambitions and more by its restrictions. It wouldn’t produce combustion engines, at least not post-Polestar 1. It wouldn’t incorporate colors, whether inside or outside. It wouldn’t adhere to traditional generational model cycles. For one of its models, it doesn’t even feature rear windows. Yet, the quest for profitability has eluded the fledgling brand, compelling it to reconsider some of those restrictions. A newly unveiled roadmap on Wednesday clearly indicated: Polestar’s original business model was unsuccessful, and it has been substituted.
Acknowledging its merits, Polestar remains committed to its EV-only philosophy, while many competitors have deviated from this path. However, it is backpedaling on several other policies. It will welcome colors, an approach instead of limiting its vehicles to various shades of gray. Design lead Philipp Römers expressed a desire to make the brand’s offerings “more emotional” during the company’s recent strategy update, and introducing new shades is anticipated to achieve that; he hinted at this late last year. Interior buttons will also be included in this initiative.
One of the key announcements from today’s business briefing was the revelation of a successor to the Polestar 2, a car that, two years ago, former CEO Thomas Ingenlath claimed wouldn’t receive one—at least not directly. At that time, a new model named the Polestar 7 (remember that; we’ll revisit it) was meant to take the place of the 2, and this unconventional naming approach was intended to encourage innovation.
“Even if we create a remarkably similar vehicle, due to a different number, we won’t find ourselves trapped by the notion of what the car once was,” Ingenlath told Autocar in 2024, mentioning the Volkswagen Golf as an example of a classic model that cannot genuinely innovate due to its own branding.
However, as we discovered today, we are not only anticipating a new Polestar 2 in early 2027—which is not just a refresh but an “entirely new car,” in Römers’ words—but also the Polestar 7 compact SUV in 2028. Meanwhile, the Polestar 6 roadster received mere mention today among the announcements of four forthcoming vehicles in the next three years. By the way, it wasn’t specified as one of those; a North American Polestar representative confirmed that the 6 will debut after the 7. This suggests a potential launch in 2029 at the earliest for the brand’s anticipated flagship model.
Additionally, there’s the Polestar 4, which our own Joel Feder recently experienced; a fresh variant is already on the way. The current 4 will soon be rebranded as the 4 Coupe, while the “new” 4 will feature a longer roof that resembles more of a wagon than an SUV—and it will include a rear window.
Lastly, there’s the Polestar 5. It remains a legitimate sedan (or a “grand tourer,” in the brand’s terminology), and it is still unlikely to hit the U.S. market anytime soon.
Polestar’s readiness to diverge from conventional automotive production was admirable, but its strategies have remained perplexing since the beginning. The company’s naming strategy, to start with, lacks any coherent up- or down-market progression. The concept of avoiding standard model generations might seem innovative to the company’s designers, but it is bound to frustrate consumers. There’s a reason brands hold value; once introduced, they prevent the need for continual re-introduction. This explains why a second-generation Polestar 2 is being created despite it never being planned.
And regarding the color aspect. Certainly, most people opt for white or black vehicles. However, if the goal is to stand out, excluding an entire color palette makes it evidently more challenging, at least visually.
Polestar appears to have maintained an open mindset toward these issues, which is all one can ask after several decisions that didn’t yield positive outcomes. During today’s presentation, CEO Michael Lohscheller, who succeeded Ingenlath and has led the company for just over a year now, repeatedly referred to a familiar phrase: “We’re doing the right things.” Naturally, only time will reveal the accuracy of these strategic choices. What is clear is that Polestar’s initial aspirations did not succeed, and everything communicated today reinforced that notion.
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**Polestar’s Original Ambition Did Not Succeed; The Company is Now Undergoing a Renewal**
Polestar, the performance electric vehicle brand that originated from Volvo and Geely, has faced a tumultuous path since its launch. Initially aimed at redefining the electric vehicle (EV) sector through high-performance and sustainable models, Polestar encountered several obstacles that prevented its early achievements. As the company shifts to a new approach, it becomes essential to analyze the elements that contributed to its early difficulties and the actions being taken for a renewal.
**Initial Vision and Obstacles**
Polestar’s original goal was to carve out a niche in the EV market by merging luxury, performance, and eco-friendliness. The brand aimed to attract environmentally aware consumers who desired high-performing vehicles. The debut of the Polestar 1, a hybrid performance coupe, embodied this vision but received mixed feedback. The elevated price and limited production quantities restricted its market presence, making it difficult for the brand to gain momentum.
Furthermore, the automotive landscape was swiftly transforming, with competitors like Tesla and traditional manufacturers ramping up their electric options. Polestar’s original plan struggled to adapt to this rapidly evolving environment, resulting in a lack of brand awareness and consumer engagement.
**Market Landscape and Financial Strains**
As the EV market grew, Polestar encountered intensifying competition from both legacy car manufacturers and newcomers. While demand for electric vehicles soared, Polestar’s offerings failed to capture consumer interest as effectively as competitors. Financial challenges escalated as the company aimed to scale production and broaden its range while contending with supply chain complications and increasing expenses.
The global semiconductor shortage further exacerbated the situation, affecting production schedules and delivery timelines. These difficulties culminated in disappointing sales numbers, pushing the company to reevaluate its strategy and direction.
**The Renewal: A New Path Forward**
Acknowledging the necessity for a strategic transformation, Polestar is currently undergoing a notable renewal. The company is reorienting its focus towards a more streamlined and consumer-focused methodology. Key components of this fresh strategy include:
1. **Broadened Product Range**: Polestar is channeling resources into the creation of new models that appeal to a larger audience. The introduction of the Polestar 2, a fully electric sedan, has already shown potential, boasting better accessibility and competitive pricing compared to its predecessor.
2. **Upgraded Technology and Features**: Prioritizing cutting-edge technology, Polestar intends to incorporate advanced features such as over-the-air updates, enhanced connectivity, and improved driver-assistance systems to attract tech-minded buyers.
3. **Commitment to Sustainability**: The company is intensifying its sustainability efforts, aiming to lessen its carbon footprint throughout the vehicle lifecycle. This involves utilizing recycled materials and pursuing carbon neutrality by 2030.
4. **Global Growth**: Polestar is focusing on expanding its footprint in pivotal markets, including North America and Asia. This entails developing a solid distribution network and boosting customer engagement through digital avenues.
5. **Strategic Collaborations**: Partnerships with tech companies and other automotive entities are being sought to capitalize on expertise and resources, thereby bolstering Polestar’s competitive advantage in the EV sector.
**Conclusion**
Polestar’s initial vision encountered considerable challenges that impeded its early success in the competitive electric vehicle marketplace. However, with a revitalized emphasis on product development, technology integration, sustainability, and market growth, the company is poised for a hopeful renewal. As Polestar navigates this transformative period, its capacity to adapt to market dynamics and consumer demands will be vital in determining its future achievements in the electric vehicle domain.