Swedish electric vehicle maker Polestar has credited an aggressive discount campaign targeting Tesla owners for nearly half of its United States sales of the new Polestar 3 in the first quarter of 2025.
The move contributed to a 76% surge in global deliveries during the period, with 12,304 vehicles sold between January and March, the company said on Thursday.
Polestar’s U.S. head of sales, Jordan Hofmann, told Reuters that the offer — which provides up to $20,000 off a Polestar 3 lease for Tesla owners — has proven to be a powerful draw amid growing dissatisfaction with Tesla and its CEO Elon Musk.
A fully upgraded Polestar 3 typically costs around $93,000, but the incentive brings the price down to about $73,000, making it competitive with the Tesla Model S, which starts just under $80,000.
“We piloted a conquest campaign in late February. Based on the positive response, we ran a new campaign for March and are currently running a similar offer for April,” a Polestar spokesperson said.
The discounts are available exclusively for the Polestar 3, which is manufactured at a Volvo Cars facility in South Carolina — part of the company’s broader effort to strengthen its U.S. manufacturing footprint and reduce reliance on Chinese production. That strategy has become more urgent in the wake of newly imposed tariffs on Chinese-made vehicles under President Donald Trump’s administration.
The campaign also comes at a time when Tesla’s brand has taken a hit, with its stock down 32% so far this year amid weaker-than-expected demand, record trade-ins, and criticism of Musk’s political affiliations and cost-cutting efforts. Other EV manufacturers, including Lucid and Ford, have also introduced discounts to stay competitive as consumers rush to secure deals before potential price hikes due to tariffs.
Lucid, for example, is offering up to $4,000 off its luxury Air sedans when customers trade in a Tesla.
For Polestar — backed by Chinese automotive giant Geely — the strong sales boost is a welcome sign as it pushes for profitability. The company recently underwent a leadership shake-up and appointed a new CEO to accelerate production and stabilize its financials.
Hofmann highlighted the campaign’s impact in a recent LinkedIn post, writing: “This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible.”
