02:14 07-04-2026

Polestar shifts Polestar 3 production from China to the U.S.

Polestar has decided to concentrate production of its flagship electric crossover, the Polestar 3, in the United States. By the end of 2026, assembly in China will be completely phased out, with manufacturing focusing on the plant in South Carolina.

This move means the Polestar 3 will become the brand's only vehicle fully produced in the U.S. for global markets.

Production: Shifting from China to the U.S.

Previously, the Polestar 3 was built at two locations—in China and at a Volvo plant in the U.S. The company is now consolidating production to reduce costs and simplify logistics.

A key reason cited is the high tariffs on Chinese vehicles and components. Moving production helps the brand maintain competitiveness in the American market.

Finances and Volvo's Support

Polestar remains an unprofitable brand despite growing sales. In 2025, the company sold over 60,000 vehicles but recorded operating losses of around $1 billion.

Volvo continues to provide financial support, including investments totaling hundreds of millions of dollars. This backing is expected to help Polestar stabilize its business and pursue new projects.

Model and Strategy: Focusing on the Flagship

The Polestar 3 is the largest model in the brand's lineup, built on the same platform as the Volvo EX90. This SUV targets the premium segment, blending advanced technology with performance.

In the coming years, the company will expand its model range to include the Polestar 5 and a new compact SUV. However, the Polestar 3 is set to be the key product driving its global growth strategy.