BEIJING (dpa-AFX) - Polestar is pulling out of the U.S. vehicle market starting with the 2027 model year after the Commerce Department turned down its request under the Connected Vehicle Rule. Following this news, Polestar's shares dropped over 6% on Thursday.
This rule, which has been in place since January 2025 and was upheld by the previous administration, limits the import and sale of cars that have connected technologies from China.
It affects features like Bluetooth, Wi-Fi, cellular connectivity, and certain satellite communication systems, all due to security worries about data collection.
Polestar, which is mainly owned by Geely Holding, stated that it will continue to support its existing customers in the U.S., including those with Polestar 3 and Polestar 4 vehicles, and it will uphold warranty and service operations. The company doesn't intend to challenge the decision.
This move highlights the U.S. government's tightening grip on automotive tech linked to China. Polestar has already begun shifting its growth strategy towards Europe, which made up 78% of its sales in the first quarter, while the U.S. accounted for just 6%.
Now, there's also some uncertainty around the future of the U.S.-made Polestar 3, which is manufactured alongside Volvo Cars at a plant in South Carolina.
In contrast to Polestar, Volvo received the green light from U.S. regulators to keep selling vehicles under the Connected Vehicle Rule.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
