Shares of Swedish-Chinese electric vehicle (EV) makerPolestar Automotive (NASDAQ: PSNY) were trading sharply higher on Friday after the company said it had begun production of a new electric SUV in the United States.
As of 11:30 a.m. ET, Polestar's shares were up about 16.6% from Thursday's closing price.
Polestar is now making its family-sized electric SUV in the U.S.
Polestar said it has begun production of the Polestar 3, an upscale electric SUV, at a South Carolina factory owned by Volvo Cars. Polestar is a joint venture between Volvo Cars and Volvo's corporate parent, Chinese automaker Geely Automobile Holding.
A U.S.-built Polestar 3. The company is moving to make more of its models outside of China in a bid to avoid tariffs in the U.S. and E.U. Image source: Polestar.
Polestar's headquarters is in Sweden. But until this week, all Polestar EVs destined for the U.S. and European markets were made at a Geely plant in China. Polestar's stock has slumped significantly this year on concerns that tariffs in the European Union and the U.S. will make Polestar's China-built EVs uncompetitive.
The new Polestar 3 is a three-row SUV designed with the U.S. market in mind. Production began in China late last year. Polestar 3s built in South Carolina will be sold in both the U.S. and Europe in a bid to avoid steep tariffs.
Polestar will build another model outside of China in 2025
Polestar reiterated plans to begin building its Polestar 4, a smaller sporty crossover currently built in China, in South Korea in 2025 -- again, to avoid tariffs. The company also resolved a lingering compliance issue with the Securities and Exchange Commission by filing its Form 20-F annual report earlier this week.
Polestar will report its second-quarter results before the U.S. markets open on Thursday, Aug. 29.
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