Polestar 2 pricing to target Tesla Model 3

August 6, 2021October 1, 2021 John Carey 2119 Views

Polestar is expected to challenge Tesla on price when the Sweden-based EV specialist opens its digital doors for business in Australia late this year.

While the Polestar 2 is sure to be competitive with the Model 3, could the newcomer also take on less costly EVs?

Looking at Polestar pricing elsewhere, this seems to be at least a possibility.

The Polestar 2 line-up recently grew to three variants in the brand’s seven European launch markets, adding a more affordable two-wheel drive, single motor version to the family.

All three Polestar 2 models have the same basic body, but differ in performance and range, roughly mimicking the lineup for the Tesla Model 3.

UPDATE: Polestar 2 Australan pricing confirmed: full details
FULL REVIEW: Polestar 2 Standard Range, Long Range driven
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The price of the least costly Polestar 2 Standard Range single motor model is only €1100 ($1800) above the top-grade version of the Nissan Leaf e+. The two cars have very similar battery pack and electric motor specifications, by the way.

Compared to the Model 3, Polestar 2 prices in Europe are lower from top to bottom of the respective three-variant ranges. Expressed in Australian dollars, the base-grade 2 costs around $7000 less than the Model 3 Standard Range Plus.

The middle Polestar 2 Long Range single motor is about $12,000 less than the dual-motor Model 3 Long Range.

And the Polestar 2 Long Range dual motor is a whopping $17,000 less than the top Tesla Model 3 Performance.

In Australia, those Teslas retail for about $64,700 (SR+), $79,000 (Long Range) and $93,100 (Performance).

It’s worth noting that Tesla’s Australian pricing is generally sharper than it is in Europe – possibly because they’re sourced from a Tesla factory in China. Tesla also recently sharpened its Australian prices – only months after already slashing prices.

However, it’s also likely Polestar’s Australian team will be keen to take advantage of the EV incentives being rolled out across the country. The most generous incentives currently on offer are from NSW and can save consumers more than $5000 when they’re scheduled to be introduced in September. To get the biggest benefit a car must be priced below $68,750.

Another pointer to the Polestar 2’s likely cost competitiveness is the Australian price announced by Volvo for its XC40 Recharge Pure Electric – $76,800, before on-roads.

The Volvo uses exactly the same vehicle platform, battery pack and motors as the top Polestar 2 Long Range dual motor. So there’s every chance that top-spec Polestar 2 will undercut the Model 3 Performance.

Driving range and performance are lower than the Model 3 Performance Long Range, but so is the price, even though Tesla recently reduced the prices of Model 3s.

While there are plenty of reasons to be hopeful that the Polestar 2 range will be relatively affordable, nothing is known for sure until the company officially announces Australian pricing.

John Carey

Grew up in country NSW, way back when petrol was laced with lead. Has written about cars and the car business for more than 35 years, working full-time and freelance for leading mags, major newspapers and websites in Australia and (sometimes) overseas. Avidly interested in core EV technologies like motors and batteries, and believes the switch to electromobility definitely should be encouraged. Is waiting patiently for someone to make a good and affordable EV that will fit inside his tiny underground garage in northern Italy, where he's lived for the past decade. Likes the BMW i3, but it's just too damned wide...