Polestar US Sales to be Restricted

By Natalie Hughes 27/06/2026 3 min read 16 views

Polestar will no longer be able to offer new vehicles in the US market starting from the 2027 model year. This follows a decision by the US Department of Commerce not to grant the electric vehicle manufacturer an exemption under the so-called Connected Vehicle Rule.

Reporters indicate the US Department of Commerce has denied Polestar an exemption under the Connected Vehicle Rule, which restricts the sale of connected vehicles manufactured by companies, or using certain software suppliers, that are controlled by China or Russia.

The US government says the measures are intended to address national security concerns related to vehicle data and connected systems. They apply to new model variants from the 2027 model year onwards.

Vehicles already produced, including the Polestar 3 and Polestar 4, as well as all model-year 2026 and earlier vehicles, can continue to be sold in the United States. Only a few weeks ago, Polestar introduced updates for both models for the 2027 model year.

The Polestar 3 gained an 800-volt electrical architecture and higher charging power, among other upgrades, while changes to the Polestar 4 were largely limited to a revised suspension setup. The company is based in Gothenburg, Sweden.

Polestar plans to focus more strongly on Europe in the future. Around 80 percent of its global sales already come from the European market.

From the 2027 model year onwards, it prohibits the sale of vehicles if their manufacturers or suppliers of security-relevant software are controlled by China or Russia. The regulation primarily affects connectivity, driver assistance and automated driving systems.

From the 2030 model year, the requirements will also apply to the corresponding hardware. The rules also prohibit Chinese manufacturers from testing automated vehicles on public roads in the United States.

Manufacturers from other countries may also be affected if their vehicles or the hardware and software they use fall within the scope of the regulation. The US Department of Commerce can grant exemptions under the rule.

Geely Group, a Chinese company, is the majority owner of both Volvo and Polestar. While Volvo has received an exemption under the Connected Vehicle Rule, Polestar’s application was rejected.

The decision will likely have significant implications for Polestar’s business strategy. As it shifts its focus to the European market, it will be interesting to see how this affects its overall sales and revenue.

Meanwhile, the US government’s efforts to address national security concerns related to vehicle data and connected systems continue to evolve. The Connected Vehicle Rule is just one part of a broader initiative to ensure the security of critical infrastructure.

As the automotive industry becomes increasingly reliant on connected technologies, the need for robust security measures will only continue to grow. More regulations and guidelines will emerge in the coming years to address these concerns.

The Connected Vehicle Rule thus complements the USA’s existing trade barriers against Chinese vehicle manufacturers. While tariffs primarily hinder the import of Chinese electric cars, the new regulations target the hardware and software used in vehicles, as well as their connectivity, and will likely influence electric vehicle incentives in other regions.

Polestar is now focusing on the European market.