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.
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Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
