The US Commerce Department has denied Polestar authorization to sell new vehicles in the United States starting with the 2027 model year under the Connected Vehicles Rule. The Swedish brand, majority-owned by China's Geely, said it will continue selling existing inventory of the Polestar 3 and Polestar 4 while shifting focus to Europe. Polestar stock fell 6.3 percent on the Nasdaq following the announcement.
The decision blocks vehicles with connected technologies such as cellular, Wi-Fi and Bluetooth linked to China due to national security concerns over data collection. The rule, adopted in January 2025, remains in effect under the current administration.
Polestar confirmed it will not appeal and plans to sell off remaining US inventory of its current models. Chief executive Michael Lohscheller noted the company anticipated the change and is redirecting growth efforts toward Europe, which accounts for 78 percent of its sales compared with 6 percent from the US.
Ford and other automakers are seeking similar authorizations. Polestar's sister brand Volvo Cars received approval in May.