Overview
- The Commerce Department denied Polestar’s waiver for model year 2027 after approving Volvo’s similar request in May 2026, leaving Polestar unable to sell new cars in the U.S.
- Polestar says the Polestar 3 uses the same hardware and software stack as the Volvo EX90 and that both are built on the same Ridgeville, South Carolina production line.
- Polestar told regulators it was willing to accept mitigation measures such as audits, limits on remote access, and geographic data controls, and the company says the Bureau of Industry and Security did not engage on those offers.
- As a result of the denial, Polestar announced it will wind down U.S. sales for the 2027 model year, is offering steep discounts on remaining inventory, and faces a New Jersey dealer lawsuit that alleges the company planned the exit.
- The dispute spotlights how the Connected Vehicle rule, which targets telematics and software ties to designated foreign adversaries, is being enforced and could influence future decisions for other automakers with China-linked ownership.