Polestar can no longer sell new cars in the United States past the 2027 model year. The U.S. Department of Commerce’s Bureau of Industry and Security denied the EV maker, owned by China’s Geely group, the approval it needs to keep selling vehicles in America, citing the Connected Vehicle Rule. The company’s shares fell more than 5 percent in premarket trading.
Polestar isn’t contesting the decision. By the company’s own numbers, the U.S. was never where the money came from, as 94 percent of its retail sales in the first quarter of 2026 landed outside America. CEO Michael Lohscheller is pointing what’s left toward Europe and other growth markets. “The automotive industry is entering a new phase, based on regional dynamics,” he said in a statement.
“Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe,” Lohscheller continued. “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.”
* This is a developing story
