Polestar on Friday confirmed its first customer deliveries of U.S.-built electric vehicles.

Every Polestar model to date has been manufactured in China, but the 2025 Polestar 3 is assembled at a South Carolina plant shared with Volvo. Production started there in August following software-related delays.

First U.S. Polestar 3 deliveriesFirst U.S. Polestar 3 deliveries

The Polestar 3 is a platform-mate of the Volvo EX90, which is built at the same South Carolina plant. But where the Volvo offers three rows of seats, the Polestar sticks to two, with total seating for five, with a sportier character. It offers up to 315 miles of range from a 111-kwh battery pack, with a standard dual-motor all-wheel-drive powertrain rated at 489 hp and 620 lb-ft of torque, or 517 hp and 671 lb-ft in optional Performance Pack spec.

The Polestar 3 has a base price of $74,800 that’s under the $80,000 federal tax-credit cap for electric SUVs. But even with that, and U.S. assembly, it’s unlikely to qualify for a federal tax credit for the foreseeable future. In addition to more stringent sourcing requirements, new “foreign entity of concern” language disqualifies subsidiary companies if a “parent entity” in China, Russia, Iran, or North Korea holds more than 50% in the company.

First U.S. Polestar 3 deliveriesFirst U.S. Polestar 3 deliveries

Polestar has said it will pass on a $7,500 credit for leases, following the approach of other automakers in exploiting what’s being called the EV leasing loophole. This allows use of a provision intended for commercial vehicles by automakers with captive financing arms to claim a credit and pass the savings on to customers even if vehicles don’t otherwise qualify.

Building cars in the U.S. does at least avoid recently-hiked tariffs on Chinese EVs. In a more complex solution to the same problem, U.S.-market versions of the coupe-like Polestar 4 will be built at a Renault plant in South Korea. That’s scheduled to start in the second half of 2025.

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