Polestar won’t be able to sell its electric vehicles in the US starting with the 2027 model year. The Department of Commerce’s Bureau of Industry and Security denied the company’s request for authorization under the Connected Vehicle Rule, which bans the import and sale of vehicles containing software from China.
The rule was introduced during the Biden administration over national security concerns. It blocks vehicles that rely on software or connected technology originating from what the government calls “countries of concern.” Polestar, which is owned by Volvo (itself majority-owned by China’s Geely), couldn’t get the clearance it needed to continue selling in the US beyond the 2026 model year.
Polestar confirmed the retreat in a press release, saying the decision follows the government’s ruling. The company had been seeking authorization to continue US sales but ultimately couldn’t satisfy the rule’s requirements.
It’s a significant blow for the Swedish EV maker, which has been trying to establish itself as a premium electric brand in the US market. The company currently sells the Polestar 3 and 4 in America, but future models will be off-limits without a policy shift or a fundamental change in how the company develops its software.
The move could also have implications for other automakers with Chinese ownership or software dependencies. As geopolitical tensions continue to shape trade policy, the Connected Vehicle Rule may end up affecting more companies than just Polestar.
