Shift in consumer calculus
Polestar's chief executive told financial television that the recent rise in fuel costs has altered consumer concerns from range limits to the immediate expense of refuelling. "People are concerned, 'how much do I pay at the gas station?'" Michael Lohscheller said, describing a move away from abstract worries about EV range toward concrete anxiety about pump prices.
The CEO attributed increased demand to higher fuel prices, saying both used and new electric vehicles are seeing stronger interest as energy costs climb. Lohscheller linked the spike in fuel prices to disruptions at the Strait of Hormuz - a narrow shipping lane that normally handles about one-fifth of the world's oil supply - and noted that oil has been rising since the U.S. and Israel attacked Iran in late February.
Financial results and industry pressures
Polestar, a Chinese-owned company headquartered in Sweden, reported a first-quarter net loss of $383 million last week. The company said that the loss reflected a combination of pricing pressure, stronger competition and tariffs from the EU and the United States. Despite the widening loss, production and sales volumes increased 7% compared with the same period a year earlier.
Lohscheller also highlighted competitive dynamics across major markets. He described China's market as "hyper competitive" and suggested that Europe needs to "speed up" to remain competitive. At the same time, he pointed to uncertainty in the U.S. market, noting disappearing tax incentives and wider consumer apprehension about rising costs as headwinds for vehicle demand and industry planning.
Implications for manufacturers and buyers
According to the CEO's comments, the immediate effect of higher fuel prices is a recalibration of purchase priorities among consumers. Where earlier motivations for buying EVs included idealism or environmental considerations, Lohscheller said price and running-cost calculations are now dominant in buyer decision-making.
Outlook
Polestar's experience illustrates how geopolitical events and energy-market responses can alter consumer behavior quickly, amplifying demand for electrified transport while exposing manufacturers to margin pressure from pricing dynamics, tariffs and intense competition.