Polestar barred from US market due to national security concerns
The US Department of Commerce has refused to permit Polestar to sell new cars in the US, citing national security concerns under the Connected Vehicle Rule. The decision affects Polestar's US sales from 2027, and the company will continue to sell existing stock. Polestar is majority-owned by Geely, a Chinese automotive giant.
Key points
- Polestar, a Swedish electric vehicle manufacturer, will not be able to sell new cars in the US from 2027 due to national security concerns.
- The US Department of Commerce's Bureau of Industry and Security cited the Connected Vehicle Rule, which prohibits selling cars with software or hardware from China or Russia.
- Polestar is majority-owned by Geely, a Chinese automotive giant, and has not been granted authorization to sell in the US.
- The company will continue to sell existing stock of Polestar 3 and Polestar 4 vehicles in the US.
- Polestar's sister brand Volvo, also owned by Geely, received authorization for US sales.
Polestar, a Swedish electric vehicle manufacturer, has been barred from selling new cars in the US due to national security concerns. The decision, made by the US Department of Commerce's Bureau of Industry and Security, affects Polestar's US sales from 2027. The agency cited the Connected Vehicle Rule, which prohibits selling cars with software or hardware from China or Russia.
Polestar is majority-owned by Geely, a Chinese automotive giant, and has not been granted authorization to sell in the US. The company will continue to sell existing stock of Polestar 3 and Polestar 4 vehicles in the US. However, this decision is a significant blow to Polestar's US operations, which began in 2024 with the production of the Polestar 3 model in South Carolina.
Interestingly, Polestar's sister brand Volvo, also owned by Geely, received authorization for US sales. This raises questions about the consistency of the US Department of Commerce's decision-making process. Polestar has stated that it will continue to support customers in the US, including providing access to its service network.
The company has also announced that it is increasing its strategic focus on Europe, where 94% of its retail sales volume in the first quarter of 2026 came from. This shift in focus is likely a response to the loss of access to the US market.
Sources
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