It is commonly believed that most consumers of electric vehicles do so to protect the environment. People interested in purchasing a Tesla (NASDAQ:TSLA) or Volkswagen(ETR:VOW3) are thought by many to be most concerned about climate change and unhealthy air caused by emissions from internal combustion engines powered by fossil fuels, as well as water pollution caused by drilling and fracking for crude oil and natural gas.
However, do the majority of electric vehicle purchasers do so for environmental reasons? In a recent text message to Microsoft founder Bill Gates, Tesla (NASDAQ:TSLA) CEO Elon Musk emphasized that his company, which manufactures the most electric vehicles in the world, is doing the most to solve climate change. Do people genuinely consider climate change solutions when test-driving a Tesla (NASDAQ:TSLA) or another electric vehicle? Or do they desire to purchase the car for other reasons?
Tesla (NASDAQ:TSLA) competitor Polestar (NASDAQ:PSNYW) claims to have data indicating that most Americans who purchase electric automobiles do not do it for environmental reasons.
The Reasons Why People Purchase Electric Vehicles
What characteristics are essential for a U.S. driver to move from a gas-powered vehicle to an electric vehicle? 55% of EV customers are more interested in the vehicle’s entertainment systems, in-vehicle technology, and seamless connectivity than environmental benefits, according to a survey commissioned by Polestar (NASDAQ:PSNYW) on July 26. Between January 5 and January 26, 2022, OnePoll polled 5,086 American drivers for the study.
Gregor Hembrough, head of Polestar (NASDAQ:PSNYW) North America, said in the statement, The notion of luxury is defined by what’s ‘under the hood has been replaced in the electric era by the prioritization of seamless connectivity, interaction with existing digital ecosystems, and good UX design. People are converting to electric vehicles for more than just environmental reasons. Because of Polestar’s emphasis on in-vehicle technology, they can have everything they want in eco-friendly packaging. The Gothenburg, Sweden-based automaker, established in 2017 by Volvo and Zhejiang Geely Holding Group, markets the Polestar 2, its first completely electric, high-volume vehicle. The EV’s base model has 408 horsepower and costs $40,900. Before this, from 2019 to 2021, it marketed the low-volume hybrid vehicle Polestar 1.
Polester (NASDAQ:PSNYW) will release its first electric SUV, the Polestar 3, in October 2022, followed by a smaller SUV coupe EV, the Polestar 4, in 2023.
Attempting to Compete Against Tesla
The EV maker has set the bar high to compete with Tesla (NASDAQ:TSLA) as its CEO Thomas Ingenlath stated in a statement that the company had set a goal to sell 290,000 EVs by 2025. As the company only delivered 21,200 units in the first six months of 2022, a 125 % increase from the same period in 2021, the company has a steep hill to climb to accomplish its objective. The company reported receiving 50,000 vehicle orders in the year’s first half and aimed to deliver the same number for the entire year.
Polestar (NASDAQ:PSNYW) has opened 125 retail sites in Europe, North America, China, and the Asia Pacific by the end of the first half of the year and anticipates opening an additional 30 by the end of 2022.
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