US blocks Polestar sales, forcing Sweden-based EV maker to exit market

Polestar’s U.S. retreat has put thousands of owners and dozens of dealers in limbo, with the Swedish EV maker saying it will keep servicing current customers even as questions mount over software support, resale values and the long-term availability of parts. The company said existing U.S. inventory of the Polestar 3 and Polestar 4 will keep selling while supplies last, and it is offering a $25,000 Clean Vehicle Incentive off MSRP for cash buyers of new 2026 Polestar 4s.

The exit followed a denial from the U.S. Department of Commerce’s Bureau of Industry and Security, which did not grant Polestar authorization under the Connected Vehicle Rule to sell vehicles in the United States from model year 2027 onward. The rule targets connected vehicles tied to companies owned or controlled by China or Russia. Polestar is headquartered in Sweden but majority owned by China’s Geely Holding, and one of its models is assembled at Volvo’s plant in Ridgeville, South Carolina.

Polestar said it would continue servicing current U.S. owners through its existing dealer and service network, but the ruling has left dealers and customers uncertain about how long that support will hold, especially for software updates that increasingly define modern EV ownership. That uncertainty is especially sharp for early adopters who bought into a brand that had been building a U.S. presence and now faces a forced exit before launching its next model-year vehicles.

The company later said it would strengthen its focus on Europe after the ruling. Its U.S. departure comes as the brand remains under financial strain: on July 9, 2026, Polestar reported a 4% decline in quarterly sales volumes. A day earlier, on June 30, 2026, Geely Sweden Holdings AB converted about $300 million of shareholder loans into equity, while Volvo Cars converted about $66 million.

Polestar’s lineup currently includes four models, the Polestar 2, Polestar 3, Polestar 4 and Polestar 5. Planned future vehicles include a new Polestar 4 variant in late 2026, a Polestar 2 successor in early 2027, the Polestar 7 in 2028 and the Polestar 6 roadster. The blocked U.S. sales path now threatens to cut off that lineup’s American future just as the company tries to steady its finances and pivot back toward Europe.