Polestar is lowering the starting price of its next model as demand for electric cars slows

Swedish electric car maker Polestar Automotive Holding on Wednesday cut the base price of its Polestar 3 model by more than 12 percent and launched a new variant, as it braces for weak demand.

The decline in demand in the global market for electric vehicles has led to a series of job cuts and missed production targets, and the deterioration of car manufacturers for electric companies to reduce their prices in an attempt to revive demand.

Polestar has lowered the starting price of the Polestar 3 model range to $73,400, down from $83,900. The company has added two new variants, bringing the range to four variants.

All Polestar 3 variants will be fitted as standard in the US with the “Pilot Pack”, which includes a driver assistance system, the company said.

Deliveries are expected to start in the second quarter of 2024. When the Polestar 3 model was launched in October 2022, the company aimed to start deliveries in the fourth quarter of 2023.

The company has been struggling with weak demand for its cars, with 2023 deliveries falling short of a target set in January, and more expensive models have struggled to meet demand.

Separately, Wells Fargo lowered its rating on Tesla stock because of concerns about the company’s declining demand for its electric vehicles. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)