U.S. — The U.S. Department of Commerce refused to authorize Polestar to sell new electric vehicles in the U.S. market on June 25, 2026. The decision restricts cars with Chinese software or hardware under the "Connected Vehicle Rule."

The Commerce Department specifically declined to authorize imports of new Polestars from model year 2027 onward. Polestar had requested special authorization to sell its vehicles in the U.S., but the refusal applies only to new models, allowing the company to continue selling its existing stock of Polestar 3 and Polestar 4 vehicles in the U.S.

Polestar stated it will "continue to support customers, including providing access to its service network." The company also indicated it is "increasing its strategic focus on Europe." Polestar CEO Michael Lohscheller said, "The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe."

Lohscheller also noted, "Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America, and Canada." In the first quarter of 2026, 94% of Polestar's retail sales volume came from markets outside the U.S.

Polestar is owned by Geely, which also owns Volvo. Polestar was spun out of Volvo Cars as a pure electric vehicle brand by its corporate parent, Zhejiang Geely Holding. Zhejiang Geely Holding also owns other original equipment manufacturers, including Lynk and Co and Zeekr. Much of Polestar's manufacturing is in China, though the Polestar 3 SUV is built in South Carolina at the Volvo plant near Charleston. Polestar 4s destined for the U.S. were built in South Korea. The Trump administration granted authorization to sell vehicles in the U.S. to Volvo in early 2026.

Why It Matters

The Commerce Department's decision to refuse authorization for new Polestar vehicle sales impacts the electric vehicle market and Polestar's U.S. operations. The ruling aligns with the "Connected Vehicle Rule" concerning Chinese software and hardware.

Polestar's shift in focus to Europe and other international markets follows the U.S. decision. The company's continued support for existing U.S. customers suggests a phased withdrawal from new model sales in the region, while its global sales performance in early 2026 shows activity outside the U.S. market.