Polestar Reports Strong Q1 Sales Growth as Incentives Lure Tesla Owners

April 10, 2025

Swedish electric vehicle manufacturer Polestar has reported a significant jump in first-quarter sales, driven in part by aggressive discount strategies including its headline-grabbing “Tesla Conquest” bonus program.

The Volvo Car Group and Geely-backed automaker saw deliveries increase by 32% year-over-year in Q1 2025, according to figures released yesterday. The company delivered approximately 18,400 vehicles globally during the quarter, compared to 13,900 in the same period last year.

Polestar’s Chief Executive Officer Thomas Ingenlath attributed the strong performance to a combination of expanded market presence, production efficiency improvements, and strategic incentive programs designed to attract customers from competing EV brands.

“Our first quarter results demonstrate the growing appeal of Polestar’s design-focused approach to electric mobility,” said Ingenlath in a statement. “We’re successfully attracting customers who are looking for a premium electric experience with Scandinavian design principles and a strong sustainability focus.”

Industry analysts point to Polestar’s aggressive discount strategies as a key factor in the sales surge. Most notable among these is the company’s “Tesla Conquest” bonus, which offers owners of Tesla vehicles up to $5,000 off the purchase of new Polestar models.

“Polestar has clearly identified Tesla’s customer base as prime territory for conquest sales,” said Maria Hernandez, senior automotive analyst at Capital Research Partners. “With Tesla’s aging Model 3 and Y facing increased competition, Polestar is positioning itself as a premium alternative for those ready to switch brands but stay electric.”

The incentive program appears to be paying dividends particularly in North America and European markets, where the company reported sales increases of 41% and 37% respectively. The Polestar 2 fastback remains the company’s bestselling model, though the recently launched Polestar 3 SUV is gaining traction in the crucial premium electric SUV segment.

“About 26% of our new customers in the first quarter were previous Tesla owners,” revealed Jessica Chen, Polestar’s Global Sales Director. “The conquest bonus has certainly helped us get on their radar, but it’s our product quality and customer experience that’s closing the deals.”

The sales boost comes at a critical time for Polestar as it works to reach profitability amid intense competition in the premium EV segment. The company has been expanding its retail footprint with new “Polestar Spaces” opening in key metropolitan areas worldwide.

Beyond the Tesla-focused incentives, Polestar has implemented broader price cuts and lease specials across its lineup, following industry trends as EV makers compete for market share in a price-sensitive environment. The company’s finance arm has also introduced more flexible purchase options and enhanced trade-in values to lower barriers to entry.

Market watchers note that Polestar’s targeted approach differs from across-the-board price slashing seen elsewhere in the industry. “They’re being strategic about where they apply incentives rather than simply reducing sticker prices,” explained Hernandez. “This helps preserve brand value while still driving sales growth.”

The company’s stock rose 7.2% following the announcement, with investors encouraged by the sales momentum. However, analysts caution that maintaining this growth while achieving profitability remains challenging in the increasingly crowded EV landscape.

Polestar reaffirmed its 2025 delivery target of 80,000 vehicles, representing approximately 30% annual growth if achieved. The company also highlighted ongoing production ramp-up of its Polestar 4 coupe SUV and development progress on the upcoming Polestar 5 grand touring sedan.

As legacy automakers and new entrants continue expanding their electric offerings, Polestar’s ability to differentiate itself while managing costs will be crucial to its long-term success. For now, its targeted conquest of Tesla customers appears to be a winning strategy in building market share.

The company will release its complete Q1 financial results later this month.