As Tesla navigates controversies surrounding CEO Elon Musk and shifting consumer sentiments, one of its smaller competitors is making a bold move to lure Tesla owners away. Luxury electric vehicle (EV) brand Polestar is now offering a lucrative incentive to Tesla drivers, potentially slashing up to $20,000 off the cost of leasing a new Polestar 3.
Polestar’s $20,000 Incentive to Tesla Owners
Polestar has introduced the Polestar Conquest Program Bonus, a $5,000 discount exclusively for Tesla owners, in an effort to attract them to the brand’s latest electric SUV, the 2025 Polestar 3. When combined with the Polestar Clean Vehicle Noncash Incentive—which provides up to $15,000 in additional savings—the total discount can reach a staggering $20,000 off a new Polestar 3 lease.
A representative at Polestar’s Royal Oak, Michigan showroom confirmed that eligible Tesla owners will see the $5,000 conquest bonus directly deducted from the lease total. Additionally, the clean vehicle incentive applies to all Polestar models, further enhancing the savings potential.
For reference, the base price of the 2025 Polestar 3 is $73,400, excluding a $1,400 destination charge, according to the Detroit Free Press.
Who Qualifies for the Tesla Trade-In Bonus?
Unlike traditional trade-in programs, Tesla owners do not need to trade in their vehicles to take advantage of the incentive. According to Polestar spokesperson Mike Ofiara, this is the first time Polestar has specifically targeted customers from a single automaker.
The program, which initially launched on February 21, 2024, has been extended due to strong customer interest. Ofiara highlighted that Polestar saw a surge in customer handovers (when a buyer takes delivery of their new Polestar) during the last week of February, accounting for 60% of the company’s monthly total. Additionally, search traffic and customer leads for Polestar vehicles have risen significantly since the program’s launch.
Why Is Polestar Targeting Tesla Now?
While Polestar has not explicitly stated why it is targeting Tesla, the campaign arrives amid reports of Tesla’s declining sales and growing competition in the EV market. Despite these challenges, Tesla remains a dominant force in the EV industry with a loyal customer base and major manufacturing operations in California, Texas, and beyond.
The Rise of Polestar in the EV Market
Polestar started as a Swedish racing team specializing in Volvo performance tuning before evolving into a high-performance EV manufacturer. Originally part of Volvo, Polestar is now backed by Chinese automotive giant Geely, allowing it to leverage Volvo’s engineering expertise while building an independent brand identity.
Polestar manufactures vehicles in China, Europe, and South Carolina, where its Ridgeville plant is a key part of its U.S. growth strategy. The company is also expanding its model lineup, including the upcoming Polestar EX30, which is built in Europe to bypass tariffs on Chinese-made EVs.
Although Polestar remains a relatively small player in the EV space, with 44,851 global sales in 2023, its strategic positioning and access to advanced EV technology, motors, and battery systems from Volvo and Geely have accelerated its credibility and market presence.
Is It Worth Switching from Tesla to Polestar?
With rising competition in the EV market, Tesla owners looking for an alternative luxury EV now have a compelling offer from Polestar. The $20,000 lease discount on the 2025 Polestar 3 makes it one of the most attractive incentives available today, potentially influencing Tesla drivers to consider making the switch.
As Tesla continues to face scrutiny and increased market competition, will more Tesla owners take advantage of Polestar’s aggressive incentives? Time will tell, but one thing is certain: the battle for EV dominance is heating up.
