Polestar barred from US new car sales starting 2027

The electric vehicle manufacturer Polestar will be forced to stop selling new cars in the United States beginning with the 2027 model year, the company announced on Thursday, June 25, 2026. The decision follows a denial of authorization by the U.S. Department of Commerce’s Bureau of Industry and Security under a new regulation targeting connected vehicle technology linked to China.

The regulation, known as the Connected Vehicle Rule, restricts the import and sale of vehicles with certain software and hardware from companies owned by or subject to the jurisdiction of China or Russia. U.S. officials have cited national security concerns, arguing that connected vehicles could collect sensitive data or be accessed remotely by foreign entities. The software restrictions take effect for model year 2027 vehicles, with hardware restrictions following in 2030.

Polestar, a Swedish brand majority-owned by China’s Geely Holding Group, stated that while it will be barred from introducing future model-year vehicles, it will continue to sell its existing inventory of Polestar 3 and Polestar 4 models in the U.S. The company also pledged to maintain its service network and honor all warranties...