Overview
- The U.S. Commerce Department denied Polestar authorization under the Connected Vehicle Rule on June 25, which will bar the company from selling new connected-models in the United States from the 2027 model year.
- Polestar reported second-quarter retail sales of 17,296 cars, a 4% year-on-year decline, and introduced a separate sales metric that excludes U.S. volumes to reflect the regulatory outcome.
- The company is running heavy, time-limited offers in the U.S. — including up to $25,000 off Polestar 4 and up to $23,000 off Polestar 3 with delivery by July 31 — while promising to keep service, warranties and used-car sales in place for owners and dealers.
- Management has ruled out an appeal, is accelerating a pivot to Europe where roughly 80% of first-half sales occurred, and is reallocating production to South Korea and Slovakia to avoid tariffs and regulatory risk.
- Polestar faces acute financial pressure after a large first-quarter loss and recent balance-sheet support from Volvo and Geely, and the U.S. exit raises questions about dealer viability, resale values for owners, and the future of the U.S.-built Polestar 3.