Polestar barred from selling new models in US over Chinese‑linked tech rule

Polestar Automotive, a Swedish‑Chinese electric‑vehicle brand majority‑owned by Geely, was denied authorization by the U.S. Department of Commerce to sell any new models in the United States from the 2027 model year onward. The decision stems from the “Connected Vehicles Rule,” a national‑security measure introduced in January 2025 that blocks vehicles whose hardware, software or ownership links are tied to China.

The ban shocked owners and dealers, sparking concerns about resale values, warranty support and the future of the brand’s service network. Polestar said it will continue to sell its existing inventory of Polestar 3 and Polestar 4 EVs in the U.S. and will provide service through a network of 32 centers located inside Volvo dealerships. “I’m trying to stay optimistic,” said a recent buyer, while a New Jersey dealer complained, “It just doesn’t make sense how some brands could get a green light and we got a red light.”

Polestar plans to pivot toward its European market, which accounts for roughly 80% of its sales, and may redirect South‑Korea‑built vehicles from the U.S. to Europe. Analysts estimate the ban could put about US$250 million of 2027 revenue at risk – roughly 5% of the group’s total sales. The brand is also exploring possible legal challenges to the rule.