BUSINESS

United States orders Polestar to halt vehicle sales

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The United States will bar Swedish-based electric-vehicle maker Polestar from selling new vehicles in the country starting with the 2027 model year, the company said on Thursday. The move follows the U.S. Commerce Department’s refusal to grant Polestar authorization under the Connected Vehicles Rule, adopted in January 2025 to restrict vehicles using China-linked connected technologies on national security grounds. Bluetooth, Wi-Fi, cellular and some satellite systems fall under the rule. Polestar, majority-owned by China’s Geely Holding, will continue selling existing Polestar 3 and 4 models and maintain service access for U.S. customers, while its shares fell 5.7% in early trading.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

2024 Polestar warns rules may prohibit sales
January 2025 Connected Vehicles Rule formally adopted
January 2025 Rule targets China-linked data connectivity
Recently United States retains rule under Trump
Thursday Commerce Department denies Polestar authorization
Thursday Polestar announces 2027 U.S. exit
Thursday Polestar shares fall nearly six percent
By 2027 New Polestar sales banned nationwide

Why This Matters to You

If you're a Polestar fan, you can still buy and service existing models. But no new ones after 2026. Check your favorite models' availability now. This could affect resale values too.

The Bottom Line

The U.S. is tightening rules on China-linked tech in vehicles. Polestar, a Swedish EV maker, is the first casualty. Worth forwarding if you know someone considering an electric vehicle purchase.