US Bans Polestar From Selling New Cars After 2027

The US has blocked Polestar from selling new cars past the 2027 model year, shutting the Geely-owned EV brand out of the American market.

The Connected Vehicle Rule bars Polestar's future sales. The US Department of Commerce’s Bureau of Industry and Security refused the authorization Polestar needs to continue operating in the country. The decision stems from the Connected Vehicle Rule, finalized under the Biden administration, which bars cars with Chinese or Russian software and hardware in their connectivity systems on national-security grounds.

Geely owns a majority stake in Polestar, and that Chinese ownership is the reason the rule applies. Washington has spent months working to block cars built and exported from China. The Trump administration has cast the effort as protection for domestic manufacturing.

Polestar 3 production in South Carolina is affected. The ruling hits the Polestar 3, the only model the automaker builds in the United States at its South Carolina factory since 2024. Those American-made examples are shipped to Europe as well.

Existing 3 and 4 inventory in the US remains available for sale until stock runs out. Polestar has promised to continue servicing cars already sold and supporting their owners.

Volvo received a waiver while Polestar did not. Sister brand Volvo, also owned by Geely, secured a waiver in May. Software restrictions under the rule take effect for the 2027 model year, with hardware restrictions following in 2030.

Polestar shifts focus to Europe and other markets. The US accounted for just 6 percent of Polestar’s retail sales in the first quarter of 2026. CEO Michael Lohscheller said in a statement that the automotive industry is entering a new phase based on regional dynamics.

“Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe,” Lohscheller continued. He pointed to record sales in 2025 and the first quarter of 2026, several new market launches in Europe this year, and continued investment in Southeast Asia, Eastern Europe, Latin America and Canada.