Polestar has announced the production start date for its new South Carolina production facility, which it will be sharing with Volvo Cars.
Polestar, much like many import brands in the United States, has faced one substantial hurdle over all others over the past year; EV incentives. While these tax incentives were previously reasonably straightforward, with the passing of the Inflation Reduction Act, things got a lot more complex, requiring EVs to be manufactured in North America (among other requirements) to qualify for incentives. Now, the Swedish automaker is poised to finally address that issue as it begins production in South Carolina.
Polestar’s “new” production facility, which currently produces Volvo vehicles, will begin production of the all-electric brand’s vehicles in 2024, according to a recent report from Reuters. This stems from Polestar’s unique connection with its parent company Volvo.
Polestar initially announced that it would begin producing vehicles at the South Carolina facility in Q4 of last year, stating that the new Polestar 3 full-size SUV would be the first vehicle to be made at its American facility. Previously, Polestar’s production has centered in China, which has been helpful as the brand took advantage of the production capabilities of its other notable parent company, Chinese automaker Geely.
Polestar will continue producing vehicles at its Chinese facilities. Still, as noted by the company’s CEO, Thomas Ingenlath, America will be its second production hub, eventually even supplying vehicles to Europe.
The production capacity of the upcoming Polestar facility has not been released, and it remains unclear how this change will affect Volvo’s existing production at the facility. Still, with an annual production target of 80,000 vehicles this year and likely well over 100,000 next year, the company will need to establish its production capabilities quickly.
While many American customers and Polestar fans are likely elated at the idea of finally being able to buy a vehicle from the brand with the help of a tax incentive, it should be noted that it remains unclear if the company’s vehicles qualify. Starting today, the Federal government has introduced two new barriers to achieving incentives, primarily regarding where battery components are sourced from and the materials within them. In short, if anything over half the value of the battery is being sourced from abroad, the vehicle won’t qualify.
On top of these battery sourcing requirements, vehicles produced at the South Carolina facility will also need to be priced under a segment-specific amount to qualify, which for SUVs, is $80,000.
It should be noted that Polestar still has a lot of time before production starts to make changes that could allow any of their vehicles to qualify, as long as they are assembled at its South Carolina facility, but this will undoubtedly be a monumental task. Luckily, Polestar certainly isn’t alone, with numerous automakers facing the same pressure, but getting the jump on its competitors could be the key to future success in the United States and around the globe.
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 FSD fleet is nearing 7 billion total miles, including 2.5 billion city miles
As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles.
Tesla’s Full Self-Driving (Supervised) fleet is closing in on almost 7 billion total miles driven, as per data posted by the company on its official FSD webpage.
These figures hint at the massive scale of data fueling Tesla’s rapid FSD improvements, which have been quite notable as of late.
FSD mileage milestones
As can be seen on Tesla’s official FSD webpage, vehicles equipped with the system have now navigated over 6.99 billion miles. Tesla owner and avid FSD tester Whole Mars Catalog also shared a screenshot indicating that from the nearly 7 billion miles traveled by the FSD fleet, more than 2.5 billion miles were driven inside cities.
City miles are particularly valuable for complex urban scenarios like unprotected turns, pedestrian interactions, and traffic lights. This is also the difference-maker for FSD, as only complex solutions, such as Waymo’s self-driving taxis, operate similarly on inner-city streets. And even then, incidents such as the San Francisco blackouts have proven challenging for sensor-rich vehicles like Waymos.
Tesla’s data edge
Tesla has a number of advantages in the autonomous vehicle sector, one of which is the size of its fleet and the number of vehicles training FSD on real-world roads. Tesla’s nearly 7 billion FSD miles then allow the company to roll out updates that make its vehicles behave like they are being driven by experienced drivers, even if they are operating on their own.
So notable are Tesla’s improvements to FSD that NVIDIA Director of Robotics Jim Fan, after experiencing FSD v14, noted that the system is the first AI that passes what he described as a “Physical Turing Test.”
“Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies,” Fan wrote in a post on X.
News
Tesla starts showing how FSD will change lives in Europe
Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.
Tesla has launched Europe’s first public shuttle service using Full Self-Driving (Supervised) in the rural Eifelkreis Bitburg-Prüm region of Germany, demonstrating how the technology can restore independence and mobility for people who struggle with limited transport options.
Local officials tested the system on narrow country roads and were impressed by FSD’s smooth, human-like driving, with some calling the service a game-changer for everyday life in areas that are far from urban centers.
Officials see real impact on rural residents
Arzfeld Mayor Johannes Kuhl and District Administrator Andreas Kruppert personally tested the Tesla shuttle service. This allowed them to see just how well FSD navigated winding lanes and rural roads confidently. Kruppert said, “Autonomous driving sounds like science fiction to many, but we simply see here that it works totally well in rural regions too.” Kuhl, for his part, also noted that FSD “feels like a very experienced driver.”
The pilot complements the area’s “Citizen Bus” program, which provides on-demand rides for elderly residents who can no longer drive themselves. Tesla Europe shared a video of a demonstration of the service, highlighting how FSD gives people their freedom back, even in places where public transport is not as prevalent.
What the Ministry for Economic Affairs and Transport says
Rhineland-Palatinate’s Minister Daniela Schmitt supported the project, praising the collaboration that made this “first of its kind in Europe” possible. As per the ministry, the rural rollout for the service shows FSD’s potential beyond major cities, and it delivers tangible benefits like grocery runs, doctor visits, and social connections for isolated residents.
“Reliable and flexible mobility is especially vital in rural areas. With the launch of a shuttle service using self-driving vehicles (FSD supervised) by Tesla in the Eifelkreis Bitburg-Prüm, an innovative pilot project is now getting underway that complements local community bus services. It is the first project of its kind in Europe.
“The result is a real gain for rural mobility: greater accessibility, more flexibility and tangible benefits for everyday life. A strong signal for innovation, cooperation and future-oriented mobility beyond urban centers,” the ministry wrote in a LinkedIn post.
News
Tesla China quietly posts Robotaxi-related job listing
Tesla China is currently seeking a Low Voltage Electrical Engineer to work on circuit board design for the company’s autonomous vehicles.
Tesla has posted a new job listing in Shanghai explicitly tied to its Robotaxi program, fueling speculation that the company is preparing to launch its dedicated autonomous ride-hailing service in China.
As noted in the listing, Tesla China is currently seeking a Low Voltage Electrical Engineer to work on circuit board design for the company’s autonomous vehicles.
Robotaxi-specific role
The listing, which was shared on social media platform X by industry watcher @tslaming, suggested that Tesla China is looking to fill the role urgently. The job listing itself specifically mentions that the person hired for the role will be working on the Low Voltage Hardware team, which would design the circuit boards that would serve as the nervous system of the Robotaxi.
Key tasks for the role, as indicated in the job listing, include collaboration with PCB layout, firmware, mechanical, program management, and validation teams, among other responsibilities. The role is based in Shanghai.
China Robotaxi launch
China represents a massive potential market for robotaxis, with its dense urban centers and supportive policies in select cities. Tesla has limited permission to roll out FSD in the country, though despite this, its vehicles have been hailed as among the best in the market when it comes to autonomous features. So far, at least, it appears that China supports Tesla’s FSD and Robotaxi rollout.
This was hinted at in November, when Tesla brought the Cybercab to the 8th China International Import Expo (CIIE) in Shanghai, marking the first time that the autonomous two-seater was brought to the Asia-Pacific region. The vehicle, despite not having a release date in China, received a significant amount of interest among the event’s attendees.