EVwire brief: Polestar will stop selling new cars in the United States from the 2027 model year.
The US Department of Commerce's Bureau of Industry and Security declined to grant the brand the authorization it needs under the Connected Vehicle Rule. The rule, which was finalized in January 2025, bars cars with sufficient China or Russia “nexus” from the US market on national-security grounds.
Software prohibitions take effect with the 2027 model year, and hardware restrictions follow in 2030. Despite this, existing Polestar 3 and Polestar 4 stock stays on sale until it sells through, and Polestar will keep servicing current owners.
Even after it exits the United States, Polestar will be servicing its current vehicle owners
Polestar's problem is ownership, not assembly. China's Geely holds a majority stake, and the rule targets who controls a brand rather than where its cars are built. So even the Polestar 3, which is assembled at Volvo's plant in South Carolina, falls under it.
The split with Volvo is the sharp part. Volvo is also owned by Geely, but it was granted authorization in May, while Polestar was not. Volvo is a larger, separately listed automaker with a deeper US footprint, while Polestar shares more platforms and software with Geely's wider structure.
Hat tip to industry watcher Sawyer Merritt, who flagged the news on X.
Context:
Losing the US stings less for Polestar than it would for most. Most of the brand's volume already lives outside America, with 94% of its retail sales in the first quarter of 2026 coming from there, and Europe alone making up close to 80%.
Michael Lohscheller, CEO at Polestar, noted that the brand is pushing harder towards Europe, where it plans to build the upcoming Polestar 7. The company is looking to Southeast Asia, Eastern Europe, Latin America, and Canada as further growth markets.
“The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine. […] Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year.”
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