Polestar Banned From Selling Cars In US From Model Year 2027

The U.S. Department of Commerce’s Bureau of Industry and Security denied Polestar an authorization under the Connected Vehicle Rule. Polestar will continue to sell its existing inventory of Polestar 3 and 4 crossovers in the United States and will continue to offer support to customers and access to its service network. But no new 2027 models will set wheels on American soil.

The Connected Vehicle Rule is a regulation that restricts the import and sale of vehicles equipped with Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS) tied to foreign adversaries, primarily from China and Russia. Polestar is owned by Chinese auto giant Geely, which has also been the parent company of Swedish brand Volvo since 2010. However, Volvo has recently been granted authorization to sell connected vehicles in the United States.

The rule, set out by the Bureau of Industry and Security (BIS), classifies modern vehicles as mobile data centers and is designed to protect national security by keeping sensitive driver data and vehicle control systems out of the hands of foreign governments. Michael Lohscheller, Polestar CEO, confirms that the company is well aware that the automotive industry is entering a new phase, based on regional dynamics. So, Polestar will shift its strategy to its biggest market as it is preparing its exit from the U.S. market. The report notes that Polestar sold 5,384 cars in the U.S. in 2025, with 60,119 units sold globally.