Overview
- The Bureau of Industry and Security declined to grant Polestar a company-specific authorization under the Connected Vehicle Rule, meaning Polestar cannot sell new model year 2027 connected vehicles in the U.S.
- Polestar, which announced the decision on Thursday, June 25, 2026, will sell remaining U.S. inventory of the Polestar 3 and Polestar 4 and continue aftersales service but will stop marketing and new-model sales in the U.S. from MY2027 onward.
- The company said it will intensify its focus on Europe and prepare to localize future production there, including plans to build the Polestar 7 in Europe and prioritize markets where it already has strong demand.
- Polestar’s exclusion stems from its ownership links to China’s Geely Holding, a factor the rule treats as disqualifying regardless of where a car is assembled, a distinction that left Volvo—its corporate sibling—free to sell after receiving an authorization.
- The decision will shrink Polestar’s U.S. operations—about 100 U.S. employees and 32 dealers will support existing owners while sales run down—and signals how geopolitics and software-focused rules are reshaping where EV makers can access the U.S. market.