Polestar US sales ban starts with model year 2027 vehicles. The Commerce Department’s Bureau of Industry and Security did not authorize the Chinese-owned EV brand under the Connected Vehicles Rule. Polestar confirmed the decision in an investor release. It said the company will focus more heavily on Europe as the US market becomes harder to serve.
The decision does not mean current Polestar owners suddenly lose support. It targets sales of new model year 2027 vehicles in the United States. Polestar says existing new-vehicle inventory remains available. That includes Polestar 3 SUVs built in South Carolina and Polestar 4 vehicles imported before the rule takes effect.
What the Connected Vehicles Rule Does
The BIS rule targets connected-vehicle hardware and software linked to China or Russia. Commerce officials argue that modern cars can collect location data, camera feeds, and sensor data at scale. The software restrictions begin with model year 2027 vehicles. Hardware restrictions follow later for model year 2030 vehicles.
That distinction matters for Polestar because the company is majority-owned by China’s Geely. The rule does not simply look at where a car is assembled. It also looks at ownership, software, and hardware. A manufacturer needs authorization to keep selling connected vehicles in the US.
Even the US-Made Polestar 3 Is Affected
This lands awkwardly because Polestar moved Polestar 3 production to South Carolina in 2024. The shift helped reduce exposure to tariffs on China-built EVs. Those US-built SUVs were supposed to make the brand look more local. Under the Connected Vehicles Rule, that is not enough by itself. The compliance question follows the connected technology and corporate structure.
Polestar is not presenting the US as its main growth engine anymore. The company says Europe accounted for nearly 80 percent of its global sales in 2024. It also says 94 percent of first-quarter 2025 sales came from outside the United States. That makes the new plan less of a retreat from its core market. It looks more like a survival move around a difficult regulatory wall.
What Happens Next
Polestar says it is still pursuing authorization from BIS. It will also continue selling current inventory while it can. Still, the company is warning investors that US policy could limit future models unless the authorization picture changes.
The ruling adds another pressure point to the EV market. Tech My Money recently covered how Polestar’s wagon showed practical promise. The BMW i3 opened orders early in a market already shaped by trade policy. Meanwhile, Volvo’s EX60 shows how related EV brands can face very different US outcomes.
