United States authorities have barred Polestar from selling new vehicles in the country starting with the 2027 model year. The Department of Commerce announced the decision, revoking the company’s authorization to sell under the existing Connected Vehicle Rule. This move effectively ends new car sales for the Swedish brand in the American market, though the company will continue to clear out current inventory before exiting.
Data security concerns drive the ban. The ruling stems from the U.S. government’s Connected Vehicle Rule, which prohibits the sale of new cars containing hardware or software with potential ties to China or Russia. Polestar falls under this restriction because it is owned by the Chinese conglomerate Geely. The company’s 2023 and 2024 models, including the Polestar 3 and 4, rely on platforms closely related to those designed and manufactured by Geely.
Geely also owns Lotus and Volvo, but Volvo continues to receive certification to sell its cars in the U.S. The primary issue is data security. Officials are concerned that connected vehicles could share data or be remotely accessed by companies or organizations in foreign countries that may be politically influenced.
While the ban targets the 2027 model year, the impact will ripple through the industry’s supply chain immediately. Manufacturers often finalize platform designs years in advance, and a sudden shift in regulatory compliance can force costly re-engineering of entire vehicle families. This creates a difficult environment for brands trying to balance global manufacturing networks with strict national security protocols, particularly when the parent company operates across borders.
Geely brands face uncertain futures
The Department of Commerce has not yet ruled on whether other Geely group brands will face the same exclusion. The Lotus Eletre and Emeya are both manufactured in Wuhan, China, and utilize the Electric Premium Architecture (EPA). This platform is a version of the SEA architecture that also underpins models from Zeekr, Smart, and Volvo.
Despite the ban, Polestar has committed to maintaining aftercare services for existing customers. The company stated that the U.S. market accounts for only 6 percent of its total sales volume as of the first quarter of 2026. Europe is the brand’s largest market, representing about 80 percent of its volume.
In response to the ruling, Polestar plans to increase its strategic focus on Europe. The company will manufacture its upcoming Polestar 7 compact SUV in Europe after 2027. Plans to introduce a new variant of the Polestar 4 SUV and a second-generation Polestar 2 saloon will proceed unchanged.
