Polestar has been banned from selling its cars in the US

Polestar has confirmed that the US Department of Commerce’s Bureau of Industry and Security has banned it from selling vehicles in the country from the 2027 model year onwards. Yikes.

The ban relates to the new ‘Connected Vehicle Rule’ that will restrict the sale of new cars with both hardware and software linked to China or Russia. Polestar is owned by Geely, with the 2, 4 and new 5 saloon all built in China. The 3 SUV is actually built in the US, but still won’t be allowed to remain on sale in 2027.

The Bureau of Industry and Security says that “these transactions pose national security risks, as companies from these countries may be compelled to share data or allow remote access to connected vehicles in the United States".

In response to the news, Polestar has said that it will continue to sell its existing stock of 3s and 4s, and that it will support customers with servicing after it withdraws from the market. The US apparently accounts for just six per cent of Polestar’s retail sales.

“The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe,” said Michael Lohscheller, Polestar CEO.

“Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada.

“Polestar continues to challenge bigger, more established players thanks to our impressive cars and growing model line-up. Polestar 5 has received incredible feedback from the global media, with customer deliveries set to start during the summer. A new variant of our global bestseller, Polestar 4, is planned for the second half of this year, followed by the all-new Polestar 2 in 2027, and thereafter the Polestar 7 compact SUV.”

Yep, in case you weren’t aware, the 7 is Polestar’s upcoming crossover, while the new variant of the 4 that Lohscheller mentions is a high-riding estate that should give the 4 an actual rear window. Hurrah!