Polestar CEO: Rivals Delaying EV Production Are Falling Into 'An Incredible Trap'
The CEO of Polestar, Thomas Ingenlath, warns that automakers like Mercedes, Ford, and Aston Martin that are delaying electric vehicle (EV) production risk missing out on a window of opportunity. He believes that waiting for consumers to catch up with EV technology is a dangerous strategy and urges companies to embrace innovation. Polestar, as a premium performance EV maker, sees this as a great opportunity as there is currently limited competition in its sector. Ingenlath also emphasizes that the hesitation to switch to EVs is not just due to economic pressures but also fear of change. Cheaper models and advancements in technology are needed to boost EV sales.
Polestar CEO Urges Rivals to Embrace Innovation
Thomas Ingenlath, the CEO of Polestar, warns that automakers such as Mercedes, Ford, and Aston Martin are making a mistake by delaying EV production until consumers are ready. He believes that waiting for consumers to catch up is a dangerous strategy and calls it 'an incredible trap.' Ingenlath emphasizes the importance of embracing innovation in electric drivetrains, batteries, electronics, and software.
Polestar, being a premium performance EV maker, sees this delay as an opportunity. Ingenlath states that the company has not been heavily impacted by the low demand for EVs, thanks to the popularity of its Polestar 3 and 4 models. He also mentions the upcoming launch of the Polestar 5 later this year.
Ingenlath's comments come after Sweden-based automaker Volvo Car sold a significant portion of its stake in Polestar due to financial difficulties and poor demand for EVs. However, Polestar remains confident in the rebound of the EV market.
Fear of Change Hinders EV Adoption
According to Ingenlath, the low demand for EVs is not solely due to economic pressures but also fear of switching from traditional fossil fuel-powered cars. He believes that people are hesitant to embrace change and new technology, which is not a recipe for a successful future.
While the fear of change plays a significant role, the lack of cheaper EV models is also a deciding factor for consumers. Ingenlath's perspective aligns with other big-name auto companies, such as Ford and Aston Martin, which have scaled back EV production due to flagging demand.
Mercedes-Benz CEO Ola Källenius even suggests that it could take 'many years' for the cost of producing EVs and combustion-engine cars to equalize.
Polestar Sees Opportunity in Limited Competition
Polestar, as a premium performance EV maker, views the delay in EV production by rivals as an opportunity. Ingenlath mentions that there is currently not much competition in the sector, which bodes well for Polestar's sales.
Despite the financial challenges faced by Polestar and the drop in electric car sales, Ingenlath remains confident in the EV market's rebound. The company recently secured a $1 billion funding package to support its operations.
Polestar has also partnered with secondhand car retailer Hertz to prevent its cars from being sold at significantly reduced prices or in high quantities.
