Polestar halts US sales after failing to secure Commerce Department approval for 2027 model-year vehicles under new data security rules.
Swedish electric vehicle maker Polestar (PSNY) will cease US sales after the Commerce Department denied authorization under the Connected Vehicle Rule. The ban targets vehicles with software or hardware linked to Chinese or Russian entities, effective for the 2027 model year and 2030, respectively.
Polestar, majority-owned by China’s Geely, was unable to secure a waiver, unlike its sister brand Volvo, which received approval in May. The rule aims to address data security concerns by restricting foreign-developed software and hardware in connected vehicles. Polestar’s Polestar 3 is produced at a shared plant with Volvo.
Shares of Polestar fell over 7% in midday trading following the announcement. The company will wind down US operations and refocus on the European market, while continuing to support existing customers.