The EV maker will stop selling vehicles in the US from 2027 after failing to secure regulatory approval under new connected-vehicle rules.
Polestar announced it will cease US vehicle sales starting with the 2027 model year due to restrictions on Chinese-linked connected-vehicle technology. The decision follows the US Commerce Department’s denial of authorization under the Connected Vehicles Rule, citing national security concerns over data collection capabilities.
The rule, implemented in January 2025 and maintained under the Trump administration, targets vehicles with Bluetooth, Wi-Fi, cellular, and satellite communications tied to China. Polestar, majority-owned by China’s Geely Holding, will continue selling existing Polestar 3 and 4 models and maintain its US service network.
Shares of Polestar dropped 5.7% in early trading. The move aligns with broader US efforts to limit Chinese EV imports, including proposed legislation and existing tariffs on Chinese-manufactured vehicles.