Polestar recently announced its decision to leave the U.S. market due to the Connected Vehicle Rule that bans cars with software linked to countries such as China and Russia. However, the announcement seemed odd, considering that Volvo, Polestar's Geely-owned sister company recently received a special authorization from the Department of Commerce to continue selling connected cars stateside.
That suspicion is now the basis of a lawsuit by New Jersey Polestar dealer Prestige Imports, who's claiming that Polestar had been planning its U.S. exit for two years and used the government ruling as a cover up.
According to Automotive News, Prestige Imports is suing Polestar for violating New Jersey's Franchise Practices Act. The act claims that a company can terminate a franchise if the dealer breached any of its agreements or obligations. The lawsuit alleges that Polestar did not give its dealers the required 60-day notice or provide any "good cause."
2026 Polestar 3 (European specification)
Photo by: Polestar
