Polestar to Exit US Market Over Federal Security Restrictions

Polestar, the electric‑vehicle brand owned by China’s Geely Holding Group, announced it will leave the United States rather than appeal a federal restriction that bars it from selling future models. U.S. regulators cited national‑security concerns over the vehicle’s connected‑car technology and the risk of foreign data access.

The company will focus on markets such as Europe, while its 32 U.S. dealers and current owners face uncertainty. Polestar is offering discounts of up to $25,000 to clear remaining inventory, raising questions about resale values and whether franchise laws will require compensation for dealers’ investments. Last year the brand sold 5,747 vehicles in the U.S., about 6% of its global sales, highlighting the broader challenges Chinese‑linked EV makers encounter in the American market.