Volvo’s Polestar division has announced pricing for its upcoming electric Polestar 1 performance sedan, but it’s going to be considerably higher than the Tesla Model 3 it’s intended to rival.

Auto Express reports that Polestar CEO Thomas Ingenlath estimates the car will be priced around €40,000 ($61,743 CAD) when it goes on sale in 2020. By comparison, Tesla has said the Model 3 will be $35,000 US ($44,120 CAD).

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Polestar is a wholly-owned subsidiary of Volvo that initially operated as its performance group. Last October, it became a separately-branded company that will offer its own line of Polestar-badged electrified performance models.

It will also continue as Volvo’s enhancement division, following the Swedish automaker’s announcement that all of its vehicles will have some form of electric propulsion in future.

Polestar’s first vehicle, the Polestar 1, is a low-volume plug-in hybrid, based on a Volvo platform but with a unique carbon fibre body, a fully-active chassis by Öhlins, and brakes by Akebono. About 500 are planned for production, and it’s estimated they could run from €130,000 to €150,000 ($200,516 to $231,365 CAD).

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Polestar vice-president Duncan Forrester said that the Polestar 1 is a halo model, intended to drive awareness of the brand. One will go on a world tour this year, in anticipation of production beginning in 2019. All Polestar models are slated to be built in Chengdu, China at a facility owned by Volvo’s parent company Geely.

Forrester said that the smaller Polestar 2, which he anticipates being built in the “tens of thousands,” will be a sportier model than the Tesla. “Every electric car is fast,” Forrester said. “Ours will be quick, but we want to make sure that when you’re on an exciting, dynamic road with twisty corners, you’re still delivered a performance-car drive.

“Tesla produces very quick cars, but they don’t actually market themselves as a performance car. They’ve strictly moved away from that. In our view, the brands (with) electric vehicles offer the straight-line speed, but not the holistic performance.”

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The company wants to offer its vehicles in Canada, Forrester said. It plans to sell primarily online, through a no-deposit subscription service, and with personalized delivery and maintenance service.

The company has also announced that it will later add a Polestar 3 electric SUV.