Polestar Banned from U.S. Sales Starting in 2027

[Regulatory Policy] Polestar is banned from selling new vehicles in the United States starting in 2027 due to its ties with Chinese capital.

Core Development: Polestar Denied Exemption

The U.S. Department of Commerce rejected Polestar's authorization request under the "Connected Vehicle Rule," which took effect in January 2025, prohibiting the sale of new Polestar vehicles in the U.S. beginning with the 2027 model year. This rule targets connected vehicle hardware and software linked to China or Russia, including telematics, cameras, GPS, and autonomous driving systems.

Key Data: Sister Brand Volvo Granted Continued Sales Approval

Although Polestar and Volvo are both controlled by Geely Holding Group, and while the Polestar 3 is manufactured in South Carolina and the Polestar 4 is assembled in Busan, South Korea—neither being made in China—only Volvo received an exemption. Polestar’s share price dropped 6% immediately following the announcement.

Strategic Rationale: Ban Focuses on Ownership Structure, Not Manufacturing Location

U.S. authorities focused their review on corporate control. Polestar triggered restrictions due to its ownership by Geely, highlighting a systematic U.S. strategy to exclude connected vehicle technologies from companies with Chinese investment backgrounds.