Polestar CEO says rivals like Mercedes, Ford and Aston Martin, which are delaying electric car production while consumers catch up, are falling into ‘an incredible trap’

Electric cars are all the rage, but people haven’t been buying as many as car companies like Tesla had hoped, especially in recent months. There are many causes for this, and high interest rates that increase loan repayments for buyers are the main cause.

Seeing the lukewarm acceptance of electric cars, automakers – especially those that also make traditional combustion engine cars, such as Mercedes-Benz, Ford and Aston Martin – decided to put the brakes on electric car production until consumers are ready to buy them again to buy.

The only problem? These rivals risk missing a final opportunity that could swing in their favor at any time, said Thomas Ingenlath, the CEO of Swedish EV maker Polestar.

“There is an incredible threat and danger if you don’t embrace future innovation and don’t believe in that technology – the electric powertrains, the innovation in batteries, the innovation in modern electronics and software,” Ingenlath told the newspaper. Telegraph in comments published Saturday.

“If you don’t participate in that and think you can wait, and customers are ready, then that is an incredible pitfall.”

Delaying production may be a losing strategy for some players in the EV market, but Polestar could benefit immensely. Ingenlath said the company has not been as affected by a drop in demand as the Polestar 3 and 4 are sought-after cars. (The Polestar 5 will also debut later this year.)

“It’s an incredible opportunity for Polestar that there really isn’t that much competition coming in this premium car sector,” he said.

Ingenlath’s comments come just days after Sweden-based carmaker Volvo Car dumped much of its stake in Polestar due to its financial problems and poor demand for electric vehicles.

Sweden’s Tesla rival has been making losses in recent years – a trend often seen among EV upstarts – and the so-called EV winter, caused by falling electric car sales, hasn’t helped Polestar, which recently secured $ 1 billion package received from a group of banks to keep their heads above water.

Nasdaq-listed Polestar, whose cars are priced higher than Teslas, struck a deal with used car retailer Hertz to ensure its cars don’t sell for very cheap or in large quantities. The automaker is still confident about the recovery of the EV market, which can boost sales.

Polestar representatives did not immediately return calls Fortune‘s request for comment.

Fear plays a role in delaying EV purchases

The Polestar CEO’s read on the floundering demand for electric cars is simple: It’s not necessarily economic pressure that’s keeping people from buying electric cars. It’s actually their fear of switching from cars to fossil fuels.

‘To tell you the truth, I think so too [it is about] open to innovation and the future technology,” Ingenlath said of the trend that caused the sales decline of electric vehicles.

“I see far too many people out there hesitant and afraid of change. That is simply not a good recipe for the future.”

Ingenlath is not entirely wrong. People aren’t ready to make the switch yet as they look forward to impending technology upgrades, but the lack of cheaper models is also a factor weighing on their decision.

Other major auto companies have been skittish in the current EV environment, with Ford saying it will scale back production of one of its big EVs.

Citing declining demand as a reason, luxury car company Aston Martin has paused its first battery-electric cars until demand picks up again in 2026, while Germany’s Mercedes-Benz has also revised its milestone to meet its sales target of 50% of all cars to reach. electric cars until 2030, from 2025.

Mercedes CEO Ola Källenius thinks it could take “many years” before the costs of making electric cars and cars with combustion engines equalize.

This story originally appeared on Fortune.com

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