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Polestar announces pricing for 2023 Polestar 2, along with numerous improvements
Polestar announced pricing for the 2023 Polestar 2, which will start at below $50,000 before any rebates or federal tax incentives. The Swedish automaker also included several new design and efficiency improvements in the 2023 model year, which will make the EV more competitive with other notable cars in the sector thanks to its improved range.
The 2023 Polestar 2 Single Motor configuration will start at just $48,400, or $40,900 when the $7,500 federal tax rebate is included with the vehicle. A competitive price point for the all-electric sedan, Polestar will undercut both of Tesla’s All-Wheel-Drive trim levels of the Model 3, which are priced at $55,990 for the Long Range configuration and $62,990 for the Performance package.
Software improvements rolled out by Polestar have the company anticipating a range increase of the dual-motor configurations of the vehicle by eleven miles. This will bring the EPA-estimated range for the 2023 Polestar 2 to 260 miles per charge. Polestar also included a number of design benefits and new upgrades that intend to improve efficiency and range ratings, with the most notable being the inclusion of a heat pump in the Plus Pack.
The mechanical heat pump is designed to now deliver range improvements in a wider range of temperatures and climates, which can affect EV performance. Cold weather climates are not friendly to all-electric powertrains because it requires more energy to heat the battery cells, which takes away from the driving range. Additionally, climate control features can also decrease efficiency and range. The heat pump helps combat the range loss by using already-heated air in the cabin, among several other mechanical functions that increase overall vehicle efficiency. Tesla was amongst the first EV manufacturers to utilize the heat pump in early builds of the Model Y. The company then translated the proven heat pump system to the Model 3.
Polestar will continue to roll out Over-the-Air updates to upgrade existing Polestar 2 cars equipped with the heat pump at no additional cost to owners.
The Polestar 2 will have optional “packs” that are optional add-ons for owners. The Plus Pack, Pilot Pack, and the Performance Pack both give owners additional features that can improve the ownership experience. The Plus Pack now includes an advanced cabin air filter helping improve air quality within the vehicle. A new air quality sensor and app will also allow drivers to see a breakdown of air circulating outside o the vehicle, including pollen types. The Plus pack adds $4,200 to the vehicle price.
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- Credit: Polestar
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- Polestar 2 in “Space”
The Pilot Pack is comparable to Tesla’s Autopilot and includes Blind Spot Assist, Cross-Traffic Alerts, Rear Collision Warnings with Mitigation, Adaptive Cruise Control, Pilot Assist, 360° cameras, Automatically dimmed door mirrors, Park Assist, and LED fog lights with cornering functionalities. It costs $3,400 for this package.
The Performance Pack for the 2023 Polestar 2 will equip 68 additional horsepower and 15 lb-ft of torque to the car through a software upgrade. It is only available on Dual-Motor configurations of the car, but the software will be able to purchase as a separate software upgrade — for both existing and future dual-motor cars, with and without the Performance Pack. Polestar plans to release more information on the add-ons this year.
Deliveries of the 2023 Polestar 2 will begin in September with the Single-Motor configuration priced at $48,400. The 2023 Long Range Dual Motor configuration of the Polestar 2 will start at $51,900, with both vehicles eligible for the $7,500 federal EV credit initiative.
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Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
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Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.
The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.
Model 3 and Model Y lead their respective segments
As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.
Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win.
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Euro NCAP leadership shares insights
Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.
Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.
“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
Tesla Model 3 and Model Y dominates U.S. EV market in 2025
