Overview
- Late June the Bureau of Industry and Security declined to grant Polestar an authorization under the Connected Vehicle Rule, which stops the sale of new cars with China‑linked connected‑vehicle technology from the 2027 model year.
- Polestar said it will sell remaining inventory of Polestar 3 and 4 in the United States and keep its 32 U.S. service centres open to provide warranty work and software support for existing customers.
- The denial contrasts with a May authorization granted to sibling company Volvo Cars and highlights regulators’ focus on software, ownership and control rather than where a vehicle is assembled.
- U.S. dealers and owners say they face uncertainty over resale values, long‑term software updates and the economic viability of stores that invested to sell future Polestar models.
- Polestar will accelerate its pivot to Europe, where about four‑fifths of its sales occur, and expand markets in Canada, Latin America and parts of Asia as it retools product and production plans.