Electric vehicle manufacturer Polestar has been blocked from selling new vehicles in the United States beginning with the 2027 model year after U.S. authorities declined to grant the company the authorization required under new regulations targeting connected vehicle technology linked to China. The decision represents the latest move in Washington’s efforts to limit the presence of China-connected automotive technology in the American market.

 

Polestar, a Swedish EV brand that is majority-owned by China’s Geely Holding Group, said the ruling will prevent the introduction of future model-year vehicles in the U.S. However, the company will continue selling its existing inventory of Polestar 3 and Polestar 4 models and will maintain support through its service network for current customers.

The restrictions stem from the U.S. Connected Vehicles Rule, which limits the import and sale of vehicles containing certain software and hardware technologies associated with China or Russia. U.S. officials argue that the measures are necessary to address cybersecurity and national security concerns related to connected vehicle systems.

The decision is a significant challenge for Polestar, which had previously warned that such regulations could severely affect its ability to operate in the United States, including vehicles produced domestically. Despite the setback, the company has increasingly focused on international markets, with the vast majority of its recent sales coming from outside the U.S. Europe is expected to become an even more important growth region, and Polestar plans to manufacture future models there.
 

Following the announcement, Polestar’s shares fell in premarket trading as investors assessed the impact of losing access to future U.S. vehicle sales. The development underscores the growing tension between industrial policy, national security concerns, and global automotive supply chains.