US bans Polestar EV sales over China-linked technology

The U.S. Commerce Department has prohibited Polestar, the Swedish electric‑vehicle brand owned by China’s Geely, from selling new cars in the United States. The ban stems from the Connected Vehicle Rule, which bars vehicles that use software or hardware tied to China or Russia from entering the market beginning with the 2027 model year and expands to hardware bans in 2029. Polestar’s lineup—including the Polestar 2, 4, 5, 3 SUV and 4 coupe—will no longer be sold, although the company will continue to service existing customers and liquidate its remaining inventory. Dealers across the country, about 32 showrooms, face abrupt uncertainty; many have invested heavily in new facilities and inventory of roughly 2,800 vehicles that can no longer be sold under the new rule. To clear stock, discounts of up to $25,000 are being offered on the Polestar 3 and 4 models. Dealers such as Matthew Haiken have questioned why sister brand Volvo and other manufacturers like Ford receive exemptions, highlighting perceived inconsistencies in the rule’s application. Polestar expects to continue after‑sales support while its U.S. network grapples with potential closures and the financial fallout of the sudden ban.