Polestar faces US sales ban under Connected Vehicle Rule

Polestar, the Swedish premium electric‑vehicle brand owned by China's Geely Group, sells a lineup that includes the Polestar 2, 3, 4 and the newly launched Polestar 5. In 2025 the brand reported global sales of 60,119 vehicles, a 34 % rise from the previous year, with a strong presence in Europe and Spain.

On 26 June the U.S. Department of Commerce denied Polestar the authorization required to sell new cars in the United States from the 2027 model year, invoking the “Connected Vehicle Rule”. The rule bars vehicles with active connectivity or autonomous‑driving systems developed by firms linked to “foreign adversaries”, targeting Chinese‑affiliated companies. The ban triggers an immediate 5.7 % drop in Polestar’s shares on the Nasdaq and bars the Polestar 2, Polestar 4 and future Polestar 5 from U.S. registration, as well as the Polestar 3 SUV built in South Carolina because its software derives from Geely. CEO Jim Hocking noted the U.S. market accounts for about 6 % of Polestar’s sales and said the company will refocus on Europe, which supplies roughly 80 % of its volume, while planning a new Polestar 7 model for the European market. Volvo Cars, Polestar’s partner, was not subject to the ban.