Polestar (NASDAQ:PSNY) said growing fuel costs linked to tensions in the Middle East are pushing more consumers toward electric vehicles, as drivers increasingly focus on the cost of gasoline rather than concerns about driving range.
Speaking to CNBC’s “Squawk Box Europe,” chief executive Michael Lohscheller said consumer attitudes toward EVs are shifting as energy prices rise globally.
“People are concerned, ‘how much do I pay at the gas station?’” Lohscheller said.
Higher Oil Prices Boost Interest in Electric Vehicles
Polestar said demand for both new and used electric vehicles has increased following higher oil prices triggered by disruptions around the Strait of Hormuz, a key shipping route that normally handles roughly 20% of global oil supplies.
The company indicated that economic considerations are becoming a bigger factor in EV adoption.
“In the past, people considered EVs for idealistic reasons, and now the decision is all about money,” Lohscheller said.
Company Continues to Face Competitive and Pricing Pressures
Despite improving demand trends, Polestar last week reported a wider first-quarter net loss of $383 million.
The company attributed the weaker result to pricing pressure, intensifying competition and tariffs imposed by both the European Union and the United States, although vehicle volumes still rose 7% year-on-year.
CEO Highlights Challenges Across Global Auto Markets
Lohscheller also commented on the increasingly competitive global automotive market, describing China as “hyper competitive.”
He added that Europe needs to “speed up” to remain competitive in the transition toward electric mobility.
The CEO further pointed to uncertainty in the United States market, including the phaseout of tax incentives and consumer worries over rising costs.
Oil Prices Remain Elevated Amid Middle East Conflict
Oil markets have remained under pressure since the United States and Israel launched attacks on Iran in late February, contributing to higher fuel costs worldwide.