The U.S. Department of Commerce denied Polestar authorization to sell vehicles starting with the 2027 model year. The Swedish EV brand, owned by China’s Geely, cannot continue operating in America beyond this year under the Connected Vehicle Rule.

Polestar will sell off remaining 2026 inventory of the Polestar 3 SUV and Polestar 4 crossover. After that, no new vehicles for the U.S. market. Customer service will continue through the existing service network, but the company is effectively exiting.

What This Means

The Connected Vehicle Rule prohibits vehicles with software or hardware linked to foreign entities of concern—mainly China. The rule was finalized by the Biden administration. The intent is clear: keep Chinese-linked technology out of American vehicles.

Polestar is collateral damage. The company makes good cars. The Polestar 3 has solid reviews. But the company is Chinese-owned, and that is enough.

How Polestar Got Here

Geely acquired Polestar in 2017 and took it public in 2021. The company built attractive vehicles and earned strong marks for design and performance. But it was always a niche player in the U.S. EV market.

Polestar’s sales in Q1 2026 came mostly from outside the U.S. Europe is the bigger market. The company can survive without America, though growth will slow.

What Polestar Does Now

The company will focus on Europe, where regulation is different and sales are growing. Polestar will shift resources away from the U.S. market entirely. The brand will likely continue to exist, but as a regional European player, not a global competitor.

Polestar is out. American EV buyers have one fewer choice starting 2027.