The EV maker says the compact SUV will be aimed at “the world’s fastest growing and most profitable premium segment.”

With the coupe-like Polestar 4 already in production, the manufacturer will likely take a different approach with the Polestar 7.

It'll be the brand’s first vehicle built on the Old Continent, as governments put pressure on Chinese auto production.

Swedish electric car maker Polestar has announced it is working on a new car, called the 7, and that it will be produced in Europe.

Polestar CEO Michael Lohscheller has announced that his brand will be taking on the world’s best-selling car, the Tesla Model Y, with a new model that’s expected to go on sale by the end of the decade. To compete head-on with the Model Y, the Polestar 7 would have to come with a starting price at today’s prices in the mid £40,000s.

Scandi EV brand Polestar has confirmed it will be launching a premium compact SUV EV, joining the fastest growing and most profitable market segment.

Polestar will add an electric four-door grand tourer to its lineup later this year, before expanding with another compact SUV later this decade.