Chinese ownership dooms Swedish performance EV maker.
Polestar is shifting its strategic focus toward Europe following a U.S. government decision that will prevent the automaker from selling new vehicles in the U.S. beginning with the 2027 model year.
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The Gothenburg, Sweden-based EV manufacturer announced today (June 25) that the U.S. Department of Commerce's Bureau of Industry and Security declined to grant the company an exemption under the Connected Vehicle Rule (CVR). As a result, Polestar will be unable to sell vehicles in the U.S. beginning with model year 2027. CVR is a U.S. national security policy that bars companies from selling cars that feature hardware/software that is tied to countries such as China or Russia. Polestar is owned by Chinese conglomerate Geely.
Polestar said it will continue selling existing inventory of the Polestar 3 and Polestar 4 in the U.S. while maintaining customer support and access to its service network.
Bummer. We quite liked the Polestar 4.
“Supporting our customers remains our highest priority. Existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today. All existing warranties remain in effect and will continue to be honored in accordance with their terms and conditions,” Polestar North America’s official spokesperson said. He also confirmed no future Polestar vehicles, including the Polestar 5 grand tourer we just drove , will come to the U.S.
The company said the move reinforces its strategy of concentrating on Europe, which accounted for nearly 80 percent of its retail sales volume. During the first quarter of 2026, 94 percent of Polestar's global retail sales came from markets outside the U.S.
As part of its revised strategy, Polestar plans to expand its European retail network and localize production of future models. The company previously announced that the upcoming Polestar 7 compact SUV will be built in Europe.
Polestar teased an its compact crossover, the Polestar 7, in July of 2025 as a 2028 model year vehicle.