Polestar barred from US sales shifts focus to European market

The US Department of Commerce’s Bureau of Industry and Security announced that Polestar will be prohibited from selling new electric‑vehicle models in the United States from the 2027 model year, invoking the Connected Vehicles Rule because of the brand’s Chinese ownership. The ban follows Polestar’s recent decision to build all Polestar 3 units at Volvo Cars’ plant in the United States. The United States currently accounts for only about 6 % of Polestar’s sales.

Polestar said Europe already generates roughly 80 % of its revenue and will become the company’s primary growth engine. The firm plans to launch its new Polestar 5 later this summer, introduce an updated Polestar 4 in the second half of the year, and introduce a next‑generation Polestar 2 in 2027. A compact SUV, the Polestar 7, is slated for production in Europe, and the company will continue to develop Polestar 7 there. Polestar also intends to expand in Southeast Asia, Eastern Europe, Latin America and Canada while maintaining service and sales of existing inventory in the US.