U.S. blocks Polestar from selling new EVs from 2027 onward

Polestar did not receive U.S. authorization to keep selling new vehicles in the country from model year 2027 onward under a national-security rule aimed at connected cars. Existing stock of the Polestar 3 and Polestar 4 will remain on sale in the United States, and current owners will still be supported through its service network.

The Commerce Department’s Connected Vehicles Rule was finalized on January 16, 2025, took effect on March 17, 2025, and targets connected vehicles and related hardware and software with sufficient ties to China or Russia because of concerns over data access and remote control. Beginning with model year 2027, it bars sales of connected vehicles from manufacturers owned by, controlled by, or subject to the jurisdiction or direction of China or Russia. It also phases in an import prohibition for certain Vehicle Connectivity Systems hardware starting with model year 2030, while leaving room for specific authorizations on a case-by-case basis.

Volvo Cars, which is also majority owned by Geely, received a specific authorization in May 2026 under the same rule to keep importing and selling connected vehicles in the United States.

Europe represents close to 80% of Polestar's retail sales volumes, and 94% of its retail sales volumes in the first quarter of 2026 came from markets outside the United States. It expanded into the Baltic states in June 2026 and now operates in 31 markets globally.

Chief executive Michael Lohscheller said the automotive industry is entering a new phase based on regional dynamics. Polestar plans to manufacture the Polestar 7 in Europe while expanding in Europe, Southeast Asia, Eastern Europe, Latin America and Canada. Customer deliveries of the Polestar 5 are set to begin during the summer, a new Polestar 4 variant is planned for the second half of 2026, and an all-new Polestar 2 is planned for 2027.