technology
U.S. Denies Polestar Authorization to Sell Vehicles With Chinese Technology
The Commerce Department rejected an authorization request that would have allowed Polestar to continue U.S. sales after 2026 despite a federal rule on Chinese-made connected-vehicle systems. The company, majority-owned by China's Geely Holding, said it will stop selling vehicles in the U.S. beginning with the 2027 model year.
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The U.S. Commerce Department denied an authorization that would have permitted Polestar to keep selling vehicles in the United States after a federal rule restricting Chinese-made connected-vehicle technology takes effect. Polestar said in late June that it will stop U.S. sales beginning with the 2027 model year. The company is majority-owned by China's Geely Holding.
Dealers who invested in Polestar locations said they spent millions preparing to sell the vehicles. The same dealership owner said the decision affects customers who have contacted the business and staff who work there. Thirty-two Polestar dealerships operate in the United States.
Polestar said it cannot comment on how the rule applies to other manufacturers. Polestar stated that U.S. dealerships will sell existing stock of the Polestar 3 and Polestar 4 models. A U.S. service network will continue to support customers, the company said.
Polestar reported that 94 percent of its first-quarter 2026 sales occurred outside the United States. The company said it is increasing its strategic focus on Europe. A Polestar spokesperson wrote that the company greatly values its retail partners and is working closely with them to manage the transition.
