US blocks Polestar from selling new electric cars from 2027

The U.S. will ban new sales of electric vehicles from Swedish manufacturer Polestar starting with the 2027 model year. The Commerce Department denied the company a permit under the "Connected Vehicle Rule," which restricts imports and sales of connected vehicles and technology linked to China or Russia. U.S. officials cite national security risks, including potential access to vehicle data and connected systems.

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The rule restricts the import and sale of connected vehicles and vehicle technology with ties to China or Russia.

Existing inventories of Polestar 3 and Polestar 4 models will still be sold in the U.S. The decision aligns with a tougher U.S. stance on Chinese electric vehicles and connected automotive technology, aiming to keep such products and components away from the American market due to security concerns.

Polestar, controlled by China's Geely Group, intends to shift its focus more toward Europe. The company reports that nearly 80 percent of its sales occur in Europe, with 94 percent of sales in the first quarter of 2026 coming from markets outside the U.S. The company is listed on the Nasdaq stock exchange, with its headquarters in Gothenburg, Sweden.

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The U.S. government justifies this with national security risks, such as access to vehicle data or connected systems.

Europe is also scrutinizing Chinese electric cars. The European Union has already imposed countervailing duties on battery-electric vehicles originating from China, reflecting broader international concerns about market access and security related to Chinese automotive technology.

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Polestar wants to focus more on Europe.