As the end of the financial year (EOFY) approaches in 2025, Polestar, the Swedish electric vehicle (EV) manufacturer, is making waves in the automotive market with substantial price reductions of up to $29,000 across its lineup. This strategic move is designed to clear inventory, attract new buyers, and boost sales in a competitive EV landscape.
With EOFY deals running until June 30, 2025, or while stocks last, now is an opportune moment for Australian consumers to consider a Polestar vehicle. These offers not only make Polestar’s premium electric models more accessible but also align with the brand’s ambition to solidify its position in the global EV market. Below, we explore the details of these price cuts, the models involved, and what they mean for prospective buyers.
Polestar’s EOFY Strategy: Why the Big Discounts?
The EOFY period is a critical time for car manufacturers in Australia, as brands aim to meet sales targets and clear out stock before the new financial year begins on July 1. Polestar’s aggressive price reductions reflect a broader trend among EV makers, who are responding to softening demand and increased competition.
Despite a 76% surge in global deliveries in Q1 2025 compared to the same period in 2024, Polestar’s Australian sales dropped by 77% in the first half of 2024, highlighting the need for bold action to regain momentum. By offering significant discounts, Polestar is not only addressing local market challenges but also capitalizing on the EOFY buying frenzy to attract eco-conscious consumers and those seeking premium electric vehicles at a lower cost.
These price cuts also come at a time when Polestar is expanding its portfolio and refining its commercial strategy. With models like the Polestar 2, Polestar 3, and Polestar 4 now available, and the Polestar 5 set to launch later in 2025, the company is positioning itself as a premium EV brand with a diverse lineup.
The EOFY discounts are a calculated effort to make these vehicles more competitive against rivals like Tesla, BYD, and emerging brands such as Zeekr and Smart.
Polestar 2: Significant Savings Across the Range
The Polestar 2, a sleek electric fastback, is one of the beneficiaries of these EOFY deals. For the 2025 model year, Polestar has slashed prices by $5,000 across all Polestar 2 trims, making it a compelling option for buyers seeking a blend of style, performance, and advanced technology. The Standard Range Single Motor now starts at $62,400 before on-road costs, while the Long Range Single Motor is priced at $66,400, and the Long Range Dual Motor with the Performance Pack is available for $80,380.
These reductions bring the Polestar 2 closer to the price of its key rival, the Tesla Model 3, although it remains $7,500 more expensive at its entry point.
In addition to the price cuts, the 2025 Polestar 2 comes with enhanced standard equipment, including the Pilot Pack, which features Pilot Assist and Emergency Stop Assist, as well as adaptive cruise control.
New exterior colors, Vapour and Storm, replace Magnesium and Thunder, and buyers can opt for redesigned 19-inch Aero alloy wheels or a new 20-inch wheel design. Inside, the cabin sees cosmetic upgrades like optional Charcoal nappa leather and a new gear-selector surround. For buyers prioritizing value, the Polestar 2’s combination of premium design, advanced safety features, and now-lower pricing makes it a standout choice in the EOFY sales period.
Polestar 3: A New Entry Point and Major Discounts
The Polestar 3, a luxury mid-size electric SUV, is another highlight of the EOFY deals. Polestar has introduced a new rear-wheel-drive Long Range Single Motor variant for 2025, priced at $118,420 before on-road costs, which is $14,300 less than the entry-level dual-motor variant.
This new model significantly lowers the barrier to entry for the Polestar 3, making it more accessible to buyers who want a premium electric SUV without the higher price tag of dual-motor configurations.
For those considering the dual-motor versions, Polestar has also reduced prices. The Long Range Dual Motor with the Pilot and Plus Pack is now $80,300, a $5,000 discount compared to its 2024 equivalent. The Performance Pack variant, which offers 517 horsepower and 671 pound-feet of torque, starts at $80,800, with the option to add the Plus Pack for a total of $86,300—also reflecting a $5,000 savings.
These discounts make the Polestar 3 more competitive against rivals like the Porsche Macan Electric and Mercedes-Benz EQE SUV, especially when paired with its sleek design and advanced features like the Pilot Pack’s driver assistance systems.
Polestar 4: Price Cuts as Deliveries Begin
The Polestar 4, a compact electric SUV coupe, has also seen significant price reductions as it arrives in Australian showrooms. The Long Range Single Motor variant is now priced at $78,500 before on-road costs, a $3,000 reduction from its initial pricing announced in April 2024.
The Long Range Dual Motor version has received a larger $4,700 discount, bringing its price to $88,350. Notably, this reduction positions the dual-motor Polestar 4 below Australia’s Luxury Car Tax (LCT) threshold for low-emission vehicles ($91,387), resulting in additional savings when on-road costs are factored in.
The Polestar 4’s unique design, including its lack of rear glass and sporty coupe-like silhouette, sets it apart in the compact luxury EV segment. With a starting price of $57,800 in the U.S. for the single-motor model, it undercuts competitors like the Mercedes-Benz GLC300 4Matic Coupe and Porsche Macan Electric, making it a strong contender in the global market. The EOFY discounts in Australia further enhance its appeal, particularly for buyers looking for a stylish, high-performance EV at a reduced cost.
Market Context and Competitive Landscape
Polestar’s price cuts come amid a challenging environment for EV manufacturers. Global EV demand has softened, with Australia seeing a 13.2% drop in electric car sales in the first half of 2024. Even the top-selling Tesla Model Y experienced a 10.1% sales decline, despite multiple price reductions. Other brands, including BYD, MG, GWM, and Ford, have also lowered prices to stimulate demand, reflecting the intense competition in the EV market.
Polestar’s EOFY deals, combined with its focus on premium design and performance, aim to differentiate it from mass-market competitors while appealing to buyers seeking value.
Additionally, Polestar’s strategic moves, such as expanding production in the U.S. and planning the Polestar 7 compact SUV for European production, demonstrate its commitment to reducing reliance on China-based manufacturing amid geopolitical uncertainties and tariffs. These efforts, coupled with innovative offerings like the Polestar Energy app for cost-efficient home charging, position the brand for long-term growth.
Why Act Now?
The EOFY deals, valid until June 30, 2025, or while stocks last, present a limited-time opportunity for Australian buyers to secure a Polestar vehicle at a significantly reduced price. Whether it’s the versatile Polestar 2, the luxurious Polestar 3, or the stylish Polestar 4, these discounts make premium electric vehicles more attainable.
Buyers are encouraged to act quickly, as stock may run out before the deadline, and Polestar reserves the right to adjust pricing or terms.
For those considering a Polestar, visiting an authorized Polestar Space or checking the brand’s website for configuration options is recommended. With additional incentives like the $25,000 Alternative Cash Discount on the Polestar 3 in Canada, Polestar is demonstrating a global commitment to affordability and accessibility. In Australia, these EOFY deals could be the push needed to make the switch to electric driving.
Polestar’s EOFY price cuts of up to $29,000 for 2025 are a game-changer for buyers seeking premium electric vehicles at a lower cost. By reducing prices across the Polestar 2, 3, and 4, and introducing new variants like the Polestar 3 Long Range Single Motor, the brand is making a strong case for itself in a competitive market.
These deals, combined with enhanced standard equipment and Polestar’s focus on design and innovation, make now an ideal time to consider an electric vehicle from this Swedish manufacturer. As the EOFY deadline approaches, prospective buyers should act swiftly to take advantage of these significant savings.