Polestar takes (subtle) aim at Tesla as EV wars heat up

Polestar Canada, which produces cars in multiple markets including China, the U.S., South Korea, and soon Europe, is accelerating its challenge to Tesla. Partnering with Forsman & Bodenfors for creative and Dentsu Media for strategy, the brand has launched a bold campaign offering significant rebates to entice EV owners, supported by out-of-home ads and NHL playoff advertising.

What: A new made-in-Canada campaign running under the Swedish brand’s ongoing 'No Compromises' platform. It’s promoting a rebate offer that could potentially net Tesla owners as much as $20,000 towards purchasing its entry-level vehicle, the Polestar 2, which carries a price tag of $75,000 before rebates.

When & where: The campaign consists of large-format out-of-home in the five markets where Polestar has dealerships: Vancouver, Toronto, Ottawa, Quebec City and Montreal. An estimated 90% of the Canadian EV market’s customers live in those five markets. It’s also being supported by digital, social, and extensive TV running during the NHL playoffs,

Why: Although a relatively new entrant in the EV space, Polestar Canada had been gaining momentum even before Tesla owner Elon Musk started to cause problems for the brand. 

In its Q1 results earlier this year, Polestar reported a 76% increase in global sales over the year-earlier period. Polestar Canada country manager Hugues Bissonnette attributed those numbers to the Polestar 4's European debut but said that Canadian pre-orders suggest the SUV coupe will be “extremely successful” here, with the impact showing up in the second half of 2024.

It still has a long way to go to unseat Tesla, which controls as much as 50% of the country’s EV market. However, the company sensed that growing antipathy towards Musk provided an opportunity for the brand to make serious inroads in the EV category.

“We felt there was an opportunity to [attract] some of their clientele, who’ve perhaps been in two or three different Teslas, and are looking for an alternative, and a good alternative,” said  Bissonnette.

Marketing head Olivier Camus said that increased marketing activity has already produced noticeable increases in brand awareness and consideration for Polestar, which became the second EV-only company to enter the Canadian market in 2020.

The auto industry is also facing one of its more uncertain outlooks in memory thanks to global tariff threats (“it’s quite interesting,” said Bissonnette), but is poised to ride out those challenges, he said.

“We do have a global production footprint, which protects us in a way from the geopolitical tensions that are happening now,” said Bissonnette. “We feel very confident in the brand's success going forward.”

How: The out-of-home creative features a not-so-subtle jab at Musk, who has become the increasingly unpopular face of the global EV industry. It features images of the Polestar 2, while the accompanying headline takes a subtle but direct aim at Musk’s propensity for self-aggrandization: “No power trips. More road trips.”

The campaign targets drivers along major arteries in each city, running between 5 p.m. and 6 p.m. to ensure that by 6 p.m., motorists exit the downtown core. Each driver passing the ad is subsequently retargeted with digital ads promoting a $15,000 alternative cash offer and an additional $5,000 offer for current Tesla owners.

Bissonnette said the company had “some success” with the same offer last year, but consumer sentiment towards Tesla has changed significantly over the past 12 months. This year’s results, he said, have been “fantastic,” with 50% of Polestar’s sales in the past month-and-a-half coming from Tesla owners.

The company has also been “investing massively” in hockey for the past year, including TV creative that debuted during the 2022 Super Bowl that runs throughout the NHL playoffs.