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Polestar will not be allowed to sell its electric cars until 2027 and beyond in the US after the government rejected the company’s request for regulatory approval. the new traffic law and programs from China.
In a press release, the company said the decision to leave the US follows a recent decision by the Bureau of Commerce’s Bureau of Industry and Security not to grant Polestar permission under the current Connected Vehicle Rule to sell cars from 2027 and beyond. The law, which was passed under the Biden administration, prohibits the import and sale of any vehicle with software from “concerned countries,” including China. Polestar is owned by Geely, one of China’s largest automakers.
Polestar is owned by Geely, one of China’s largest automakers.
Polestar has been preparing for the law to come into effect for over a year. The automaker, which sells its Polestar 3 and Polestar 4 electric cars in the US, had it was predicted in January 2025 that it must leave the US if it is to start working. Polestar 3 is made in the US, at the automaker’s factory in South Carolina, where Polestar 4 has been collected in South Korea.
The company says it will continue to sell existing vehicles to US customers, but will stop marketing and selling its vehicles in 2027 and beyond in the US.
“Serving our customers is our top priority,” Michael Ofiara said in a statement. “Existing Polestar owners and rental customers will continue to receive the same service and access to service as they do today. All existing warranties remain in effect and will continue to be honored subject to performance.”
Polestar said it will increase its efforts in Europe, which already represents 80 percent of the company’s sales.
“The automotive industry is entering a new phase, based on regional strengths,” Polestar CEO Michael Lohscheller said in a statement. “Our strategy shows that, with Europe being our biggest engine of growth and our plan to produce Polestar 7 in Europe. Our sales figures for 2025 and the first quarter of 2026 show that we are making great progress, and we are opening many new markets in Europe this year. In addition, we will continue to invest in markets where we have the opportunity to continue to grow, such as Southeast Asia, Latin America, Eastern Europe and Canada.”
Not every machine connected to China is being pushed abroad. Volvo, which is also mostly Geely, was soon permission to continue selling its cars in the US.