Polestar has been told to stop selling cars in the United States because it’s primarily owned by a Chinese company. Scott Budman reports.
Polestar has been barred from selling new vehicles in the United States starting with the 2027 model year after the U.S. Department of Commerce denied the company authorization under the Connected Vehicle Rule. The decision, announced on June 25, 2026, cites national security concerns regarding the Swedish automaker's majority ownership by China's Geely Holding and its use of connected-vehicle technology linked to China.
The ban specifically targets software and hardware such as Bluetooth, Wi-Fi, and cellular connectivity that could potentially allow foreign entities to access sensitive data from American drivers. Although the rule was initially adopted in January 2025 under President Joe Biden, it has been maintained and enforced by the Trump administration. Notably, Volvo Cars, which shares the same parent company, received authorization to continue sales, highlighting a distinct regulatory outcome for the two brands.
Polestar will continue to sell its current inventory of the U.S.-made Polestar 3 and South Korean-made Polestar 4, and will maintain its service network for existing owners. Following this exit from the U.S. market, the company plans to shift its strategic focus to Europe, where it intends to manufacture its upcoming Polestar 7 model.
