Electric vehicle maker Polestar is being forced out of the American market due to its ties to China, following a decision by the US Commerce Department, the company announced Thursday.
The company said the Commerce Department’s Bureau of Industry and Security denied the company an authorization to sell vehicles, starting with the 2027 model year, under a regulation known as the Connected Vehicle Rule.
The rule, instituted during the final days of the Biden administration and kept under the Trump administration, cites national security concerns to ban “connected vehicle manufacturers owned by, controlled by, or subject to the jurisdiction or direction of China or Russia, and vehicles using their covered software.”
“Companies from these countries may be compelled to share data or allow remote access to connected vehicles in the United States,” the notice of the rule said.
Polestar is majority owned by Geely, a Chinese automaker, and its chairman Li Shufu. Geely also owns Volvo, which was granted a waiver in May.
