Polestar CEO says high fuel prices drive EV demand

Investing.com -- Electric-vehicle maker Polestar said Thursday that rising fuel prices have shifted consumer focus from "range anxiety" to "pump anxiety" as a Middle East crisis drives up global energy costs.

"People are concerned, 'how much do I pay at the gas station?'" Polestar CEO Michael Lohscheller told CNBC's "Squawk Box Europe."

The company is experiencing increased demand for both used and new electric vehicles as fuel prices have climbed following disruptions at the Strait of Hormuz, a narrow waterway that typically carries about one-fifth of the world's oil supply.

"In the past, people considered EVs for idealistic reasons, and now the decision is all about money," Lohscheller said.

The Chinese-owned, Sweden-based company reported a widening net loss of $383 million in the first quarter last week. The loss was attributed to pricing pressures, intensified competition, and EU and U.S. tariffs, though volumes increased 7% year-on-year.

Lohscheller noted the automotive industry's competitive landscape Thursday, pointing to China's market as "hyper competitive" and suggesting Europe needs to "speed up."

The CEO also cited uncertainty in the U.S. market, including disappearing tax incentives and consumer concerns about rising costs.

Oil prices have risen since the U.S. and Israel attacked Iran in late February.

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