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!
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
