Sales Ban for Polestar in the USA

Politics Sales Ban for Polestar in the USA

2026-06-26 From Thomas Günnel | Translated by AI 2 min Reading Time

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Polestar will no longer be allowed to sell cars in the USA starting from the 2027 model year. The reason: The cars are too connected.

Starting from the 2027 model year, Polestar will no longer be allowed to sell cars in the USA.(Image: Polestar) — Starting from the 2027 model year, Polestar will no longer be allowed to sell cars in the USA.
(Image: Polestar)

Polestar will no longer be allowed to sell cars in the USA starting from the 2027 model year, as announced by the automaker. The decision comes from the Bureau of Industry and Security in the US Department of Commerce. The backdrop to this decision is the pressure from the US government on Chinese automakers. In this case, it affects Polestar's parent company, Geely.

The manufacturer's cars will no longer receive approval under the current "Connected Vehicle Rule." In short: the cars are deemed too connected. According to the news agency Reuters, the regulations cover Bluetooth, Wi-Fi, cellular connections, and certain satellite communication technologies. The US has raised national security concerns, fearing that the vehicles could collect sensitive data from American owners.

Protection from Chinese Competition

The regulation, introduced in 2025 and passed under President Joe Biden, is largely designed to protect American automakers from Chinese competition. According to Reuters, lawmakers have already proposed additional, even stricter legislative restrictions.

Polestar plans to sell off its existing inventory of Polestar 3 and Polestar 4 models in the US. The service network is expected to remain in place. Crucially, Polestar does not intend to appeal the rejection. "The automotive industry is entering a new phase characterized by regional developments," commented Polestar CEO Michael Lohscheller. "Our strategy reflects this: Europe is our biggest growth engine, and we plan to produce the upcoming Polestar 7 in Europe."

The automaker intends to launch several new models across Europe. Additionally, Polestar aims to drive growth in markets such as Southeast Asia, Eastern Europe, Latin America, and Canada. According to Reuters, the US previously accounted for only about six percent of Polestar's global sales, while Europe made up 78 percent.

Uncertainty Surrounding Polestar 3 Production in the US

This regulatory decision raises significant questions regarding the future of the Polestar 3, the manufacturer's only model currently built in the United States. Volvo Cars—which produces several Polestar models—announced in March, according to Reuters, that it would consolidate production of the Polestar 3 at its plant in South Carolina, abandoning plans to build the model simultaneously in Chengdu, China.

However, a Volvo spokesperson told Reuters on Thursday (June 25) that production in China had not yet been halted. Volvo stated that it was still too early to determine whether Thursday's developments would alter those manufacturing plans.

Faced with increasing pressure from global tariffs, Polestar intends to revamp older models rather than introducing entirely new ones. Deliveries of a new variant of the Polestar 4 are slated to begin later this year, with an updated version of the Polestar 2 sedan expected to follow in 2027.

The automaker’s next major release will be the Polestar 7, a compact SUV. Production is scheduled to take place at the new plant currently under construction in Košice, located in the eastern part of Slovakia.

Polestar is bringing its sportiest electric car yet, the "5 Performance," to the market. (Image: Polestar)

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