Polestar CEO says ‘pump anxiety’ boosts EV demand as fuel prices rise from Iran war

For years, the electric car industry’s biggest problem has had a name: range anxiety. Now, according to Polestar’s chief executive, the concern has moved to the other side of the pitch. “People worry, ‘How much should I pay at the gas station?‘” Michael Lohscheller spoke to CNBC’s Squawk Box Europe on Wednesdayto create an expression “pump anxiety” It’s a change that the entire auto industry is struggling to absorb.

The context is not subtle. The Strait of Hormuz, a narrow waterway that carries about a fifth of the world’s oil supply, has been effectively closed to commercial shipping since the US and Israel launched attacks against Iran on February 28. A barrel of Brent oil exceeded 100 dollars. According to RAC Fuel Watch, average petrol prices in the UK have risen by more than 25 pence a liter since the start of March, with diesel tracking around 45 pence higher. In the European Union, gasoline has exceeded 2 euros per liter in several markets. The result is a measurable, continent-wide recalculation of what it costs to drive.

The economy turned upside down

Lohscheller’s argument is that the cost equation has been reversed. “In the past, people looked at electric cars for idealistic reasons, and now the decision comes down to money.European Union electric vehicle registrations rose 51% in March compared to the same month last year, with Italy up 65.7%, France 50.4% and Germany 41.3% in the first quarter, according to industry data compiled by European Union Manufactur. Polestar’s domestic market in terms of operations, Chinese EV manufacturers and at the same time, European officials report an increase in online inquiries and test-drive orders.

The queue is not uniform. The impact was further dampened in the United States, where gasoline prices topped $4 a gallon for the first time in four years. Used EV sales rose 12% year-on-year in the first quarter and 17% quarter-on-quarter, but new EV sales have yet to show the same growth. Lohscheller cited disappearing federal tax credits and broader consumer uncertainty as factors dampening American demand.

A company under pressure

The thesis of concern comes at a time when Polestar could use some good news. The Operated by GeelyThe Sweden-headquartered company reported a net loss of $383 million in the first quarter, more than double the loss of $166 million in the same period last year. Despite a 7% increase in deliveries to a record 13,126 vehicles, revenue was flat at $633 million. Gross margin fell to minus 3.2% from a positive 10.3% a year earlier, as the company attributed the deterioration to unfavorable foreign currency movements due to pricing pressure, EU and US tariffs, lower carbon-credit sales and a weaker Chinese yuan.

The financial landscape in 2026 reveals the paradox at the heart of the EV industry. Demand is increasing, but so is the price of competition. Polestar manufactures mainly in China, which makes its cars subject to both America and its cars European tariff regimes Designed to combat the competitive advantage of Chinese manufacturing. The company is targeting the Chinese domestic market as “hyper competition” and suggested to Europe that “speed it up” own answer.

The range anxiety is over. The next is more difficult.

Lohscheller, who previously ran Opel and Vauxhall, was open about the lineup question. “Range anxiety, I think it’s goneHe said at the Financial Times Future of the Car conference on Wednesday. The cheapest Polestar 2 now offers an official range of 344 miles on the WLTP test cycle. The dual-motor Polestar 3 SUV drives 402 miles. The 82-kilowatt-hour Polestar 2 can be fully charged at the domestic rate for £5 a night in the UK. a fraction of what a comparable gasoline car would cost to refuel at current prices.

But lower operating costs have not yet become less of a purchasing concern. Lohscheller acknowledged that EV residual values ​​remain a pain point, lagging behind equivalent combustion vehicles. New car pricing pressure, driven by manufacturers struggling to meet UK zero-emission car mandate quotas or face fines, has led to aggressive discounting, further eroding used EV values. “I wish you stability” he said of the regulatory environment.Having a new argument about changing these rules every three months doesn’t help anyone.“

The bigger picture

The fuel price shock is pushing car markets well beyond Polestar’s niche. BYD exported more than 120,000 electric and hybrid vehicles in March alone, a 65% year-on-year increase. Renault has described the Middle East conflict as causing a “seismic shift” in EV adoption. The head of the International Energy Agency, Fatih Birol, called the Hormuz accident, highly evaluating the possibility of countries switching to renewable energy sources to reduce geopolitical risk. largest supply disruption in the history of the global oil market.

The irony is that the crisis that will accelerate the transition to electric vehicles is also the crisis that will punish the companies trying to lead it. High energy costs increase production costs. Tariff walls make cross-border competition more expensive. Currency fluctuations reduce margins on vehicles built in one country and sold in another. Polestar’s first-quarter results are an example of all three dynamics operating simultaneously.

Lohscheller’s formulation that the conversation shifts from range to value, from ideology to arithmetic, is probably correct. The question is whether Polestar, which is losing money on every percentage margin while managing an energy shock caused by tariffs, competition and war, can benefit from the change it describes. It may be a pump concern Good for home in aggregate. Whether that bodes well for Polestar depends on whether the company can turn growing demand into something it doesn’t yet display on its balance sheet: a sustainable business.