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Why Is Polestar Ending New Vehicle Sales In The U.S.

The Bureau of Industry and Security determined that Polestar has a sufficient connection to China through its parent company, Geely, making it ineligible for approval under the new regulations.

Feds deny Polestar authorization to sell cars in US from model year 2027. Pic via(@arstechnica)

Electric vehicle manufacturer Polestar announced it will stop selling new vehicles in the United States beginning with the 2027 model year after the U.S. Commerce Department denied the company authorization to import future models under the Connected Vehicle Rule.

The Bureau of Industry and Security determined that Polestar has a sufficient connection to China through its parent company, Geely, making it ineligible for approval under the new regulations.

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While Volvo, which also has ties to Geely, received authorization due to its broader U.S. manufacturing and operational presence, Polestar's application was rejected.

The company said it will continue selling existing inventory of the Polestar 3 and Polestar 4 while maintaining after-sales service through its network of 32 U.S. dealerships.

However, future models, including the Polestar 5 and Polestar 6, will no longer be introduced in the American market.

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Chief Executive Michael Lohscheller described the move as a strategic shift, emphasizing that Europe has become Polestar's primary growth market.

The automaker now plans to focus investments on Europe, Canada, Southeast Asia, Eastern Europe and Latin America as global trade and regulatory policies continue to reshape the electric vehicle industry.

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