The U.S. Department of Commerce denied Polestar authorization to sell electric vehicles starting with the 2027 model year. This decision stems from the Connected Vehicle Rule targeting security risks from Chinese-controlled manufacturers. Polestar, majority-owned by China’s Geely, will be prohibited from selling new models including the U.S.-built Polestar 3.

Polestar is shifting its strategic focus to the European market, which accounts for nearly 80% of its sales. The automaker will continue selling its existing U.S. inventory of Polestar 3 and 4 models. Current owners will maintain access to support through the company's service network.

The ban does not apply to fellow Geely-owned brand Volvo. Volvo successfully secured authorization to continue its U.S. operations under the new security framework.