Polestar barred from selling new models in United States under Connected Vehicle Rule

The U.S. Commerce Department denied Polestar an exemption under the "Connected Vehicle Rule," preventing the Swedish electric‑vehicle maker from selling any new cars in the United States from the 2026 model year onward. The prohibition covers all future models, including those partially assembled in the U.S., such as the Polestar 3 built at Volvo’s South Carolina plant.

Polestar may continue to sell its existing inventory of Polestar 3 and Polestar 4 and will provide service and parts to current owners. The brand, majority‑owned by China’s Geely, was treated differently from sister brand Volvo, which secured a waiver after demonstrating compliance with the rule.

The action is part of a broader U.S. effort to limit Chinese‑origin software and communications hardware in connected vehicles for national‑security reasons. Polestar’s U.S. sales accounted for about 6 % of its global volume; the news sent its New York‑listed shares down roughly 13 % before stabilising at a roughly 6 % loss. The company said it will refocus on Europe and plans to build its upcoming Polestar 7 there.