Polestar will be unable to sell new vehicles in the United States beginning with the 2027 model year after the US Department of Commerce declined to grant the company an exemption under the Connected Vehicle Rule.
The decision means Polestar’s model-year 2027 vehicles and future variants will not be eligible for sale in the US market, while vehicles produced through the 2026 model year, including the Polestar 3 and Polestar 4, can continue to be sold.
Exemption Request Rejected
The Connected Vehicle Rule restricts the sale of connected vehicles manufactured by companies, or using certain software suppliers, that are controlled by China or Russia. The US government introduced the regulation to address national security concerns related to connected vehicle technologies and access to vehicle data.
Only weeks before the decision, Polestar unveiled updates for its 2027 model-year vehicles, including an 800-volt electrical architecture and higher charging capability for the Polestar 3, while the Polestar 4 received suspension revisions.
Neither Polestar nor the US Department of Commerce has explained why the company’s exemption request was rejected.
Focus Shifts Toward Europe
Polestar said it plans to place greater emphasis on the European market, which already accounts for the majority of its sales.
According to the company, around 80% of global deliveries are made in Europe, while 94% of vehicles sold during the first quarter of 2026 were delivered outside the United States.
Headquartered in Gothenburg, Sweden, Polestar is majority owned by China’s Geely Group.
Connected Vehicle Rule
The Connected Vehicle Rule originated from a US government initiative launched in 2024 and was finalized at the end of last year. The regulation applies to connected passenger vehicles weighing up to 4.5 tonnes.
Beginning with the 2027 model year, manufacturers or suppliers controlled by China or Russia are prohibited from selling vehicles covered by the rule if they use security-sensitive software related to connectivity, driver assistance or automated driving systems. The requirements will expand to include related hardware from the 2030 model year.
The regulation also prohibits Chinese manufacturers from testing automated vehicles on US public roads.
While the rule is often associated with Chinese vehicle manufacturers, it also applies to companies based elsewhere if their ownership structure or vehicle technologies fall within its scope.
Volvo, which is also majority owned by Geely, received an exemption from the US Department of Commerce, allowing it to continue selling affected vehicles in the United States. The reasons for the differing decisions between Volvo and Polestar have not been disclosed.
The Connected Vehicle Rule complements existing US trade measures targeting Chinese-made vehicles by focusing on connected vehicle technologies and supply chains rather than import tariffs alone.
Source: handelsblatt.com, heise.de