Polestar 3 U.S. production helps EV maker avoid hefty tariffs

Credit: Polestar

Polestar has launched production of the Polestar 3 in the United States, which not only helps the company bolster its position in the U.S. market but also avoids hefty tariffs the government would have applied to the vehicles if they were imported from China.

The company is one of the first to shift production into the United States for U.S. consumers, avoiding potential penalties for building cars in China and selling them to American or European car buyers.

Polestar has been building cars in China and exporting them. However, the company is now building the Polestar 3 in South Carolina, just a few miles from Charleston, where Volvo owns and operates a plant.

Deliveries are expected to begin next month for U.S. customers. The cars will make their way to Europe shortly after, CEO Thomas Ingenlath told Reuters.

The expansion of building cars in the United States helped Polestar broaden its market footprint. In June, the company said it planned to expand its vehicle lineup across the globe by debuting electric vehicle models in seven new markets in Europe, Asia, and South America.

“Expanding our retail operations with new and existing partners will enable us to reach more customers,” Polestar CEO Thomas Ingenlath said. “Through these partnerships and expansion, we will capitalize on our strong brand and growing model line-up.”

Europe is the real focus of Polestar, as Ingenlath said he plans to launch a partnership with an automaker there to produce its vehicles locally within the next three to five years.

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Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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