The sexy electric vehicle gunning for Tesla

Thursday, 3 October 2019

Polestar is rolling out its sexy Polestar 2 to directly take on Tesla's extremely successful Model 3.

There's a new electric vehicle brand on the block, and it's chosen a handful of target cities to show off its high-performance sedan with lofty ambitions - to take a chunk of market share from the hot-selling Tesla Model 3.

It's the Polestar 2, a fastback that can travel up to 440km on a single charge, go from zero to 100km/h in under 5 seconds with all-wheel drive and boasts being the first vehicle of any kind to feature a built-in Android infotainment system. The launch edition that rolls out in the first half of next year costs US$63,000 (NZ$101,000).

Prospective buyers can get in line to purchase the car by putting down US$1,000 reservations. The company said the Polestar 2's price tag includes 25 per cent tariffs imposed by the Trump administration on cars made in China that are sent to the U.S.

The Polestar 2 is currently on a tour of the world to give people a first look at it.

'I think the equipment, the fit, the finish of the car are exceptional,' said Jonathan Goodman, Polestar's chief operating officer. 'And I think it makes a wonderful alternative to the highly successful Tesla Model 3.'

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Polestar opened its first production facility in China recently.

Once Volvo's performance brand, Polestar is now a stand-alone brand owned by Volvo's owner, Geely, the Chinese auto giant.

Production is slated to begin in the first quarter and when the car hits the streets in the second quarter, Polestar plans on opening its first retail operation in Oslo, Norway, shortly, with more than 60 locations planned around the globe by mid-2020.

With hints of Volvo, but more than enough individuality to stand out, the company is confident the Polestar 2 offers a credible alternative to a Tesla.

Company executives are working with Volvo retail franchises to determine where to place what they call 'Polestar Spaces' that will be attached to a local dealership. Goodman envisions a showroom of relatively modest size - about 240 square metres.

'There's going to be good access to the after-sales network for customers, but also a stand-alone space that they can come in and discover the Polestar brand,' Goodman said.

Polestar was once Volvo's performance arm, until owner Geely spun it off as a separate brand.

It's easy to see why Polestar wants to make a run at the Tesla Model 3.

In the first six months of this year, the Model 3 was the third best-selling car in California - unheard of for an electric vehicle. Only the Honda Civic and Toyota Camry sold more units. The Model 3 accounted for more than 60 per cent of all California's EV registrations in the first two quarters.

The Polestar 2 will be the first production vehicle to feature an infotainment system powered by Android.

'Tesla has a huge market share and they really do set the bar for what an EV is,' said Jeremy Acevedo, pricing and industry analyst for Edmunds.com.

But by producing a car with sleek styling, roomier trunk space than the Model 3 and the backing of Volvo's service network, the makers of the Polestar 2 see an opportunity.

'Dimensionally, it's pretty similar to a Tesla Model 3 and I think it creates an alternative and joins the competition in and around it where there hasn't been much,' Goodman said. 'We happen to believe it's a great alternative, but I think that's for the customer to come in and have a look and decide.'

Tesla officials declined to comment about Polestar taking aim at the Model 3.

So far, though, Tesla's domination in the EV space has endured.

The company's name recognition is unrivalled among its competitors, many Tesla owners speak of CEO Elon Musk with an almost religious fervour and the company boasts a competitive advantage when it comes to battery technology - a key component in the EV sector.

A Polestar executive earlier this month conceded that when it comes to energy efficiency, Tesla is 'far ahead of everyone else.'

But by leveraging Volvo's institutional knowledge, Polestar executives feel they can make inroads by beating the Model 3 on design and quality.

One of the Polestar 2's most talked-about features is a Google infotainment system. Google announced plans in 2017 to install Android technology into select Audi and Volvo vehicles. The Polestar 2 is the first to roll out Google's in-car experience.

With Android embedded, drivers don't have to pair their smartphones with the vehicle when they get in the car. In essence, the car and the computer are one. The 11-inch centre console displays an Android Automotive operating system that includes voice-activated Google Assistant, Google Maps and Google Play Store.

The infotainment system allows the driver to access a suite of features, such as sending texts via audio, listening to podcasts or finding the nearest charging location.

'It means you can just get in and have all the benefits of Google voice activation,' Goodman said.

Ed Kim, vice president of industry analysis for AutoPacific, a Tustin-based automotive marketing research and product-consulting firm, thinks the infotainment system will attract EV customers.

'Our research has shown time and time again that the people who are interested in electric vehicles, almost always have a very high-tech mindset,' Kim said. 'Their interest in technology extends far beyond just the powertrain technology in the car… They're total technology enthusiasts.'

Kim said most automakers aren't making money off their EV sales yet but they are jumping into electrification, especially since China has established quotas for automakers to produce EVs and the European Union has enacted increasingly stringent rules to reduce greenhouse gas emissions.

'Pretty much all automakers are truly global organisations and they view the auto industry really from a global perspective,' Kim said. 'They are taking China into account. They are taking the EU into account. They are taking the U.S. into account… and when you step back and look at the industry from a global perspective, you cannot afford not to be doing electrification.'

Polestar's Goodman agreed.

'One of the big issues we have to deal with as people over the next five years is air quality,' he said. 'We believe part of that solution is offered by electric cars. It's not the whole solution and we're not pretending it is but we're passionate about the move to electrification. So we're not building this because we have to. We're building it because we believe fundamentally this is the way the industry needs to go.'