Polestar has revealed its next-generation Polestar 2 sedan, which comes with a series of significant upgrades and some minor design changes.
Polestar is an innovative Swedish EV brand that has quickly gained a cult following in North America and Europe for its sleek and modern design, relentless dedication to sustainable manufacturing, and premium interior offerings which have clearly benefitted from the company’s relation to Volvo. Now, the company has released the next generation of its trendy Polestar 2 sedan, and with some significant performance upgrades, the vehicle has only become a more enticing offering.
Foremost in the company’s press release is the sad passing of the front-wheel-drive model; it will be missed. But in its place, Polestar has followed in the footsteps of Tesla and made rear-wheel-drive the standard drive for its vehicles. Along with the change in orientation, Polestar has designed an all-new drivetrain that means the RWD model could be pretty squirrely.
With Polestar’s new permanent magnet motor design, the single motor, RWD, standard range sedan comes with 300 horsepower (220kW), 361 pound-feet of torque, and a (while not blistering) respectable 0-60 of 6.2 seconds. Compared to the current generation sedan, this is an increase of over 60 horsepower and roughly 120 pound-feet of torque.
Luckily, this massive boost in power doesn’t come at the detriment of range. With the standard 69kWh battery, the RWD Polestar 2 achieves a range of 322 miles (518km), and with the optional 82kWh long-range battery, the sedan is capable of a staggering 395 miles (635km) of range. However, it should be noted that with the smaller standard-range battery, drivers are limited to a charging speed of 135kW instead of the 205kW the long-range battery is capable of.
Now, don’t hold your breath if you are like me and think this new upgrade has you ready to buy. Polestar will not sell the standard range sedan in North America, meaning that the base model vehicle’s price will likely rapidly increase in the next generation.
For those who are more interested in the higher performance trims, Polestar has not left you hanging. The dual-motor AWD variant of the Polestar 2, which is only available with the longer-range battery, receives an equally massive bump in power. A rear-biased system produces 422 horsepower (310kW) and 545 pound-feet of torque, rocketing the sport sedan to 60 in just 4.5 seconds. And if that isn’t enough, Polestar also sells an optional Performance Pack, which increases power to 476 horsepower and lowers the 0-60 to just 4.2 seconds.
Other upgrades to the next-gen vehicle focus on its driving tech and sustainability. Foremost, Polestar will include the “Smart Zone” on the vehicle, a panel of radar sensors, and cameras on the front of the car to aid in autonomous driving applications. While this sensor array was first displayed on the upcoming Polestar 3 SUV, it’s clear that the company will introduce it to more products as it continues to improve its autonomous driving offering.
The upgrade in sustainability is also quite significant, as Polestar has cut the carbon emissions per car produced by over a ton, equating to a far better lifecycle carbon footprint than the current generation.
Pricing has not yet been made available by Polestar for markets outside of Europe. Still, the Standard Range RWD model will be available for 50,190 euros (not available in North America), with the top-of-the-line Long Range AWD Performance model going for 64,690 euros ($70,315). The base model that will be available in North America, the Long-Range RWD, coming in March of this year, sells for 53,890 euros ($58,569).
Following Tesla’s recent price cuts, the Polestar 2, despite its unique upgrades, comes off as quite the premium offering and may face some significant backlash for not following Tesla’s steps and lowering prices. And while the company may receive some help if it can assemble the vehicle at Volvo’s South Carolina facility, allowing it to qualify for the US Federal EV incentive, it would still be priced a full $10,000 more than the base Tesla Model 3. It remains unclear if the focus on sustainability and the more premium interior will attract customers from the EV juggernaut in North America or globally.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla dispels reports of ‘sales suspension’ in California
New EV tax credit rule could impact many EV buyers
