U.S. Denies Polestar 2027 Sales but Approves Volvo under Connected Vehicle Rule

The Department of Commerce’s Bureau of Industry and Security denied Polestar authorization on June 25, 2026, to sell vehicles from model year 2027 and beyond in the United States under the Connected Vehicle Rule. Polestar announced it will not sell its electric vehicles from those model years in the US market.

The Verge reported that the rule blocks the import and sale of vehicles containing software from countries of concern, including China.

It covers Bluetooth, Wi-Fi, cellular, and satellite components and addresses concerns that cameras, sensors, and onboard computers could be used to collect data on US citizens and infrastructure. The rule also prohibits China from testing self-driving cars on US soil. Polestar sells the Polestar 3, built at its South Carolina factory, and the Polestar 4, assembled in South Korea.

The company said it will continue selling its existing stock of vehicles to US customers but will cease marketing and sales of 2027 and later models. “Supporting our customers remains our highest priority,” Polestar spokesperson Michael Ofiara said. “Existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today.

Polestar CEO Michael Lohscheller said the company will focus on Europe, which accounts for 80 percent of its sales, and other markets including Southeast Asia, Eastern Europe, Latin America, and Canada. Europe is its largest growth engine, and the company plans to manufacture the Polestar 7 there.

Volvo, also majority owned by Geely, was recently granted authorization to continue selling its vehicles in the US.