**Polestar Expanding Production Outside of China Amid Tariff Threats**

**European Commission Tariffs on Chinese-made EVs**

The European Commission is considering imposing tariffs on Chinese-made electric vehicles due to concerns about unfair competition. Polestar, a Swedish EV manufacturer, is looking to diversify its production outside of China to mitigate the impact of potential tariffs.

**Polestar’s Manufacturing Strategy**

Polestar currently produces most of its vehicles in Chengdu and Taizhou, China. However, the company is planning to start manufacturing the Polestar 3 in South Carolina for the US and European markets. This move is part of Polestar’s strategy to establish a global manufacturing footprint and reduce its dependence on Chinese production.

**Impact of Tariffs on Chinese EVs**

The European Commission’s investigation into Chinese-made EVs aims to determine if these vehicles have benefited from state subsidies, giving them a competitive advantage over Western rivals. If tariffs are imposed on Chinese BEVs imported to Europe, it could significantly impact the market dynamics.

**Polestar’s Growth Plans**

Despite facing challenges in 2024, including a decline in sales in the first quarter, Polestar remains optimistic about its future. The company expects deliveries to pick up with the launch of new models like the Polestar 3 and Polestar 4. Polestar aims to increase its sales in Europe, the US, and the Asia-Pacific region to drive its growth strategy.

**Conclusion**

As the automotive industry faces evolving trade dynamics and regulatory challenges, Polestar is adapting its production and sales strategies to navigate these uncertainties. By expanding its manufacturing footprint and diversifying its market presence, Polestar is positioning itself for long-term success in the global EV market.