Overview
- The Bureau of Industry and Security declined to grant Polestar an authorization on Thursday, June 25, 2026, which prevents the company from marketing or selling new model‑year 2027 connected vehicles in the United States.
- Polestar will sell through its remaining U.S. stock of Polestar 3 and Polestar 4 cars, continue service and warranty support for current owners, and wind down U.S. sales and marketing for future model years.
- The Connected Vehicle Rule bars connected vehicles from manufacturers owned or controlled by China or Russia based on data-security concerns, with software restrictions taking effect for the 2027 model year and hardware limits phased in later around 2030.
- The denial contrasts with a company‑specific authorization granted to Volvo in May 2026, showing the Commerce Department is issuing case‑by‑case waivers rather than a blanket policy for Geely‑linked brands.
- Polestar said it will accelerate a strategic pivot to Europe and other markets and relocate planned production for future models to Europe, a shift that has already pressured the company’s shares and raises uncertainty for other automakers with China ties.