Electric-vehicle maker Polestar told CNBC Thursday that “range anxiety” has been replaced by “pump anxiety,” amid worries around a Middle East crisis that has global energy prices soaring.
“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 seeing increased demand for both used and new EVs as fuel prices have risen following the disruption at the Strait of Hormuz, a narrow waterway that normally carries around a 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.
His comments come a week after the Chinese-owned, Sweden-based company reported a widening net loss of $383 million in the first quarter, hurt by pricing pressures, intensified competition, and EU and U.S. tariffs, even as volumes rose by 7% year-on-year.
“[The] automotive industry is super competitive… Look at what is happening in China, the market becomes hyper competitive,” Lohscheller said on Thursday, adding that Europe needs to “speed up.”
He also highlighted uncertainty in the U.S. market, including disappearing tax incentives and consumer concerns about rising costs.
Oil prices have soared since the U.S. and Israel attacked Iran in late February.
On Thursday morning, U.S. West Texas Intermediate futures with June delivery were at $101.27 a barrel, and the international benchmark Brent crude futures were at $106.31, up about 50% each since Feb. 27
