Polestar’s efforts to sell new electric vehicles in the US have been effectively halted starting with model year 2027 due to a federal rule targeting automakers with Chinese connections, despite ongoing support for current US inventory.
- US bans Polestar imports from model year 2027 due to China affiliation
- Polestar will continue supporting existing vehicle owners in US
- Volvo allowed to import 2027 models despite common ownership
What happened
The US Commerce Department has denied Polestar authorization to import its vehicles from model year 2027 onwards. This decision is part of a broader rule aiming to restrict connected cars from companies with ties to China. Polestar, a company established as an electric vehicle spin-off under Zhejiang Geely Holding, a Chinese automotive conglomerate, will no longer be permitted to sell new cars in the US beginning with the 2027 model year.
Why it matters
The ruling highlights increasing US regulatory scrutiny on companies with Chinese ownership or operational ties amid rising geopolitical tensions. It demonstrates a protectionist stance favoring domestic manufacturing and limits access for foreign-owned EV brands. For Polestar, this decision halts its US market expansion and forces strategic recalibration focused on other regions.
Notably, the ruling also exposes complexity in US trade policy since the Polestar 3 SUV is assembled in South Carolina, yet the company’s broader manufacturing footprint is heavily based in China and other countries. This distinction between brands owned by the same parent company reflects a nuanced regulatory approach shaped by national security and economic considerations.
What to watch next
Polestar has stated it will pursue growth opportunities outside the US, emphasizing markets in Europe, Southeast Asia, Eastern Europe, Latin America, and Canada. The company is planning new launches and production adaptations, including manufacturing the upcoming Polestar 7 in Europe to align with these regional strategies.