Polestar claims U.S. officials misled company before sales ban

Polestar, the Swedish-born automaker owned by Zhejiang Geely Holding Group, claims it was misled by U.S. federal officials regarding an impending ban on its sales in the United States starting in 2027.

According to a letter sent to dealers, Polestar officials state they have not received an official explanation for the denial. The company alleges that the U.S. Department of Commerce had signaled positive indications as early as January 2026. Specifically, Peter Wexler, Polestar’s U.S. head of product, retail network, and government affairs, claimed that Under Secretary for Industry and Security Jeffrey Kessler suggested it would be reasonable to expect approval if Volvo—which shares the same parent company—was also approved.

The denial follows a 13-month review of Polestar’s data practices. Despite Polestar offering to implement mitigation measures regarding data storage and undergoing independent cybersecurity assessments, the company was ultimately rejected two months after Volvo received approval. Polestar is currently seeking information from the Department of Commerce to understand the basis for the decision.