Polestar said the Trump administration is forcing it to stop selling vehicles in the United States beginning with the 2027 model year after the Commerce Department denied authorization under the Connected Vehicles Rule. The rule, adopted in January 2025 and kept in place under President Trump, restricts import and sale of cars with connected-vehicle technology linked to China over national security concerns. The Sweden-based company, majority-owned by China's Geely Holding, said it will continue selling existing Polestar 3 and Polestar 4 vehicles in the U.S. and will not appeal the denial. Polestar had warned in 2024 that the rule would effectively prohibit its U.S. sales, and it has increasingly pivoted toward Europe, which accounted for 78% of first-quarter sales compared with just 6% from the United States. The decision raises questions about the future of the Polestar 3, its only U.S.-manufactured model, which Volvo Cars had planned to consolidate at its South Carolina plant.
Geely Automobile Holdings LtdPolestar, majority-owned by Geely, is forced to halt US sales from 2027 due to connected-vehicle rule targeting Chinese-linked tech.
Volvo Car AB Series BVolvo Cars had planned to consolidate Polestar 3 production at its South Carolina plant, but the rule's impact on that plan is unclear.
