Polestar was taken out of the US market

Polestar will not be allowed to sell its electric vehicles for the 2027 model year or later in the United States after the federal government rejected the company’s application for a license under… New rule bans vehicles With software from China.

In a press release, the company said the decision to withdraw from the US follows the recent decision by the Commerce Department’s Bureau of Industry and Security not to grant Polestar a license under the current Connected Vehicle Rule to sell vehicles from model year 2027 and later. The rule, approved during the Biden administration, prohibits the import and sale of any vehicle with software from “countries of concern,” which includes China. Polestar is owned by Geely, one of China’s largest automakers.

Polestar has been preparing for the rule to take effect for more than a year. The automaker, which sells its Polestar 3 and Polestar 4 electric vehicles in the US, has done just that Expected in January 2025 And that it would have to withdraw from the United States if it entered into force. Polestar 3 It is manufactured in the United States, at the automaker’s plant in South Carolina, while… Polestar 4 It is assembled In South Korea.

The company says it will continue to sell its current inventory of vehicles to US customers, but will stop marketing and selling its vehicles for the 2027 model year and beyond in the United States.

“Supporting our customers remains our top priority,” company spokesman Michael Oviara said in a statement. “Existing Polestar owners and rental customers will continue to have the same level of support and service access as they do today. All existing warranties remain in place and will continue to be honored in accordance with their terms and conditions.”

Polestar said it will double its efforts in Europe, which already accounts for 80 percent of the company’s sales.

“The automotive industry is entering a new phase, based on regional dynamics,” Polestar CEO Michael Locheller said in a statement. “Our strategy reflects this, with Europe being our largest growth driver and our plan to manufacture Polestar 7 in Europe. Our record sales in 2025 and the first quarter of 2026 show we are making strong progress, with several new markets launching in Europe this year. Additionally, we will continue to invest in markets where we have opportunities for continued growth, such as Southeast Asia, Eastern Europe, Latin America and Canada.”

Not every China-linked automaker is being expelled. So was Volvo, which is also majority owned by Geely The license was recently granted To continue selling its cars in the United States.