- Electric vehicle (EV) builder Polestar is marking down some cars by as much as $25,000.
- The company must exit the U.S. market by the end of 2027 due to a recent U.S. Department of Commerce ruling.
Polestar is holding a going-out-of-business sale of sorts. The EV-only automaker is offering discounts of up to $25,000 on some Polestar 3 and Polestar 4 SUVs.
That brings these luxury cars down to the price of mainstream vehicles for some shoppers.
Why the fire sale? The U.S. Department of Commerce recently denied Polestar permission to sell vehicles in this country after 2027.
Chinese automotive giant Geely owns Polestar. Commerce Department rules written during the Biden administration restrict automakers from using certain software developed in China.
The decision struck many auto industry observers as strange, given that Geely also owns Volvo. The department recently granted Volvo permission to continue selling cars in the U.S. Polestar and Volvo vehicles share some components, but not all.
About the Cars and the Deals
- The Polestar 3 and 4 are midsize luxury electric SUVs with minimalist interiors and impressive power.
- The discounts are limited to certain buyers.
Polestar grew out of Volvo itself – it was once a tuner shop known for producing high-performance versions of Volvo products.
It spun off as a separate automaker focused on electric cars in 2017. It has two new cars for sale in the U.S., both based on the same platform.
The Polestar 3 is a sleek 2-row midsize SUV with a range of up to 350 miles and power ratings from 299 to 517 horsepower. Our editors have been impressed by its extensive standard equipment and smooth adaptive suspension. But its one-screen-for-everything cabin doesn’t suit every taste.
The Polestar 3 starts at $68,900, including a mandatory $1,400 delivery fee. Current discount offers bring that as low as $45,900.
The Polestar 4 is its more stylish sibling – an “SUV coupe” with four doors but a car-like roof. It’s known for one unusual design quirk – there’s no rear window. Cameras provide a view of what’s behind you. Polestar says the quirk let designers add more rear passenger headroom, but we can’t help but notice it also gave the car a lot of headlines.
The 4 starts at $57,800, including delivery, and can currently be found for as little as $32,800.
The discounts are valid only this month, and available only to buyers paying in cash or using Polestar’s own promotional financing.
There Are Risks to Buying From a Collapsing Automaker
- Buyers may be able to get service from Volvo dealerships, but should be cautious.
Buying from an automaker going out of business involves risks. Owners of Fisker cars can tell nightmare stories about how hard it is to get service on a car when the company that builds it no longer exists.
Polestar owners are likely not in as bad a situation – many Volvo dealerships today service Polestar cars and will likely continue to do so for years.
The company also isn’t going out of business entirely. It will continue to sell cars in other countries. That means Polestar will continue providing repair parts that Volvo dealerships can obtain.
But we would advise anyone considering the offers to ask detailed questions about service and repair. Shoppers should also know that resale value on a discontinued car is likely to be low.
