The U.S. Department of Commerce officially denied Polestar authorization to sell new vehicles in the United States, effective starting with the 2027 model year, thereby forcing the brand to exit the American market.
The decision comes down to national security regulations and a specific piece of legislation:
The Connected Vehicles Rule
First finalized in January 2025 and heavily enforced by the Trump administration, this rule blocks the import or sale of vehicles equipped with connected software or hardware (like Bluetooth, Wi-Fi, cellular, and satellite systems) that have a “sufficient nexus” to countries of concern, specifically China and Russia.
The U.S. government’s primary concern is data privacy and remote access—fearing that highly connected electric vehicles could collect sensitive information on American drivers and infrastructure, or be tampered with from afar.
What This Means for Polestar
- The Core Issue: While Polestar is headquartered in Sweden, it is majority-owned by the Chinese automotive giant Geely. Because Polestar’s vehicle platforms and underlying software architecture are deeply integrated with Geely’s Chinese ecosystem, the Bureau of Industry and Security rejected its application.
- The American-Made Irony: The ban even impacts the Polestar 3, which Polestar actually manufactures domestically at a Volvo plant in South Carolina. The U.S. government ruled that the vehicle’s software origins mattered more than where the physical car was bolted together.
- The Corporate Split: Interestingly, Polestar’s sister brand Volvo (also owned by Geely) did secure a waiver to continue U.S. sales, likely due to its deeper U.S. footprint and a corporate structure that convinced regulators it could sufficiently wall off its software.
Current Status & Support
Polestar is pivoting its strategy away from North America to focus heavily on Europe, which already accounts for nearly 80% of its global sales.
If you or someone you know already owns a Polestar, or is looking to buy one immediately, the company has clarified its wind-down strategy:
- Inventory Liquidation: Polestar’s 32 U.S. dealerships will remain open for now to sell through their existing stock of 2025 and 2026 model year Polestar 3 and Polestar 4 inventory.
- Ongoing Support: Polestar has committed to keeping its service network active. Existing warranties, parts availability, and customer service support will continue to be honored for current owners.