Polestar is pulling new vehicles out of the US market starting with model year 2027 after the Commerce Department declined to grant it authorization under the Connected Vehicle Rule, the company confirmed today.
The decision effectively ends new-car sales in the US for the Geely-owned Swedish EV brand — even though one of its models is assembled in South Carolina.
What Commerce decided
The Bureau of Industry and Security, part of the US Department of Commerce, declined to grant Polestar (Nasdaq: PSNY) an authorization to sell vehicles in the US from model year 2027 onward under the current Connected Vehicle Rule.
The rule, finalized in January 2025, bans connected vehicles with a “sufficient nexus” to China or Russia from the US market, with the software prohibitions taking effect for model year 2027 and hardware restrictions following in 2030. It covers telematics, cameras, microphones, GPS, Bluetooth, cellular modules, and automated driving software across gas, hybrid, and electric vehicles alike.
