Can Polestar 3 surpass its competitors with US production?

The South Carolina plant will produce vehicles that will be sold in the U.S. and exported to Europe.

Polestar has begun production of the much-anticipated 3 at its South Carolina plant, making it the brand’s first model to be produced on two continents simultaneously. However, local production alone won’t be enough to ensure the car’s success.

The Polestar 3 has been delayed multiple times since its 2022 reveal. U.S. customers who lease the model are eligible for a $7,500 tax credit. While it’s now produced locally, it’s unclear which versions will qualify for the same tax credit when purchased outright (SUVs with an MSRP of more than $80,000, for example, are not eligible). We’ve reached out to Polestar for clarification and will update this story accordingly.

Read: Polestar 3 delivery delayed, new RWD model officially unveiled

In the U.S., the electric crossover starts at $73,400 for the Long Range Dual Motor Pilot Pack. This version features a 111 kWh battery pack and a pair of electric motors for a total of 489 horsepower and 620 pound-feet (840 Newton-meters) of torque. The claimed range is 315 miles (507 kilometers).

Those seeking extra features can shell out $78,900 for the Long Range Dual Motor with Pilot and Plus Pack, which has all the same specs but adds new interior trim, heated rear seats, a 25-speaker Bowers & Wilkins audio system, and 21-inch wheels.

There are also two slightly more powerful models available, the Long Range Dual Motor with Pilot and Performance Package, and the Long Range Dual Motor with Pilot, Plus Package, and Performance Package. These models start at $79,400 and go up to $84,900. These models produce 517 horsepower and 671 pound-feet (910 Newton-meters) of torque and can travel 279 miles (449 kilometers) on a single charge.

The 3’s most direct competitor is likely to be the new Porsche Macan Electric. It has a slightly smaller 100 kWh battery driving a single electric motor in entry-level form, with an output of 355 horsepower. The cheapest Macan Electric starts at $75,300, rising to $78,800 for the dual-motor 402-horsepower Macan 4 Electric, $84,900 for the Macan 4S Electric, and $105,300 for the 630-horsepower Macan Turbo Electric.

The Polestar 3 produced in the United States will not only be sold locally, but will also be exported to Europe.

“Making Polestar 3 in the United States is a crucial step for us,” said Thomas Ingenlath, CEO of Polestar. “We can now offer American customers an electric SUV built in the United States. Exporting the Polestar 3 produced in South Carolina to Europe will strengthen our business more broadly. Polestar 3 has received excellent reviews from the global automotive media, and customers have shown great interest in test drives.”