Government Bans Polestar Sales in U.S. Starting in 2027

The all-electric company says it will continue to support U.S. customers “including providing access to its service network”

Collection of 2026 Polestar models arranged in an arc: Polestar 5, Polestar 4, Polestar 3, and Polestar 2.

written by Kyle Patrick
edited by Cameron Rogers
6/25/2026
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What's new: The U.S. Department of Commerce’s Bureau of Industry and Security has refused to authorize sales of Polestar models from the 2027 model year onward.
Why it matters: Polestar will exit the market after less than a decade here but will continue in Canada and other markets.
Edmunds says: This move suggests Chinese cars are even further from ever being sold on our shores.

If you want an existing Polestar model, you better act fast. The all-electric brand announced today that it will be leaving the U.S. market after the U.S. Department of Commerce's Bureau of Industry and Security denied the company authorization to sell vehicles starting in 2027.

"The automotive industry is entering a new phase, based on regional dynamics," said Polestar CEO Michael Lohscheller. "Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe. Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada."

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The reason: Connected Vehicle Rule

What makes this move especially noteworthy is that the Bureau of Industry and Security only just approved sibling brand Volvo's 2027 lineup for sale. Not only that, the Polestar 3 SUV is currently built in Charleston, South Carolina. The point of contention here is the Connected Vehicle Rule, which "prohibits sales of connected vehicles by connected vehicle manufacturers owned by, controlled by, or subject to the jurisdiction or direction of China or Russia, and vehicles using their covered software." Both Polestar and Volvo — along with sports car brand Lotus — are owned by parent company Geely, a Chinese automotive conglomerate that produces vehicles under several nameplates.

The automaker will continue to sell the existing stock of the Polestar 3 and the all-new and slightly smaller Polestar 4. The brand says it will continue to support existing customers, too, including providing access to its service network. How long that will last is currently unknown.

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For what it’s worth, it sounds like Polestar won't be too affected by this, at least initially. The company stated that 94% of its global retail sales in the first quarter of 2026 came from markets outside the U.S. Still, this means we might never see the Polestar 5, which we called the brand’s best vehicle yet — to say nothing of the expanded lineup that was set to include the 7 compact SUV and next-generation Polestar 2.

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by Kyle Patrick

Kyle is a freelance automotive writer with over a decade of experience. He's driven hundreds of cars over his career and two laps at the Nürburgring Nordschleife, and is always looking to pump those rookie numbers up. He once had a sim racing game pay for a year's tuition, and he has the giant novelty check to prove it.

edited by Cameron Rogers

Cameron Rogers has worked in the automotive industry since 2013. He has tested and reviewed hundreds of vehicles over the course of his career. As a manager of written content, he writes and edits the reviews that help consumers find their perfect car. Favorite cars that he's driven during his tenure at Edmunds include the 991-era Porsche 911 Turbo S, Rolls-Royce Ghost and several generations of Honda Odyssey (really).

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