Polestar Vs. Tesla: Can Smaller EV Company Disrupt Giant Facing Boycotts, Protests With 'Trade In' Offer?

Core Insights - Polestar Automotive Holding is implementing strategies to increase sales and brand awareness, particularly targeting Tesla customers with significant discounts and incentives [1][2][4]. Group 1: Sales Strategies and Promotions - Polestar is offering a $5,000 discount for Tesla owners who lease a Polestar 3, combined with an additional $15,000 in lease incentives, allowing Tesla customers to save up to $20,000 [2]. - The promotion, referred to as the Tesla Conquest Offer, has reportedly led to some of the highest order days for the Polestar 3, indicating strong momentum for the vehicle [3]. Group 2: Competitive Landscape - Tesla is facing increased competition from various electric vehicle companies, and the political actions of CEO Elon Musk are perceived to be negatively impacting Tesla's brand and sales [1][4]. - Reports indicate that Tesla's sales have declined in key markets such as Germany and California at the start of 2025, coinciding with the rise of competitive incentives from companies like Polestar [4]. Group 3: Market Reactions - Tesla's stock has decreased by 2.8% to $284.65, with a year-to-date decline of 25% in 2025, while Polestar's stock is down 1.8% to $1.07, reflecting a 27% year-to-date decline [6][7].