Polestar leasing gets a lift from new U.S. EV tax credit

The new leasing momentum is critical for Polestar retailers, who are struggling with limited volume from a single model as they invest in high-rent urban stores.

The Volvo affiliate delivered 9,874 Polestar 2 electric fastbacks in the U.S. last year.

Meanwhile, the higher-volume Polestar 3 midsized crossover is nearly a year behind schedule and won’t arrive stateside until late 2023. The U.S. will be the largest single market for the Polestar 3, with North America accounting for a quarter of global sales.

One Polestar retailer said he is “super frustrated” by the lack of throughput.

“Dealers are struggling to cover their expenses,” said the source, who requested that he not be identified. “If you’re looking at the cost of being in a shopping mall, it can be more expensive long term than owning your building.”

And while the first Polestar 3 vehicles will arrive by year-end, volume likely won’t ramp up until next summer when U.S. production begins at Volvo’s factory near Charleston, S.C.

“That’s a long time from now for dealers to keep going,” the retailer said. “There’s going to be a lot of pressure on margins.”

Hembrough acknowledged the challenge facing his retailers.

“I know the traffic has not been what they wanted,” the exec said. “The handover has not been what they wanted, but at the same time, we’re looking at all these other ways that we have an influence in the marketplace, and we’re acting upon those.”