Trump Administration Bars Polestar from Future US EV Sales Over Chinese Tech Rules
The Trump administration's Commerce Department denied Polestar authorization under the Connected Vehicle Rule, effectively banning the Swedish-Chinese EV maker—majority-owned by China's Geely—from selling new vehicles in the US starting with the 2027 model year. The rule cites national security concerns over Chinese-connected vehicle technology. Polestar will continue selling existing models and servicing customers, but is pivoting to Europe, where 78% of Q1 sales originated. Shares fell over 5-10% on the news. Volvo, also Geely-owned, received a waiver.
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Polestar Q2 sales dip 4% amid US market exit announcement
Polestar, the Geely-owned electric vehicle maker, reported a 4% year-on-year decline in Q2 2026 retail sales to 17,296 vehicles, just days after confirming it will cease US vehicle sales from the 2027 model year due to the US Connected Vehicle Rule. Excluding the US, Q2 sales fell 3.9% to 16,175 units. However, first-half 2026 sales edged up 0.4% to a record 30,423 vehicles, with US-excluded sales rising 3.1% to 28,562. CEO Michael Lohscheller highlighted strong growth in the UK, Germany, South Korea, and Iberia. The Connected Vehicle Rule, introduced in January 2025 under President Biden and maintained under President Trump, prohibits import and sale of connected vehicles linked to foreign adversaries, citing data collection concerns. Polestar will now report sales excluding the US and continue selling existing US inventory of Polestar 3 and 4 models.
Yahoo FinancePolestar Q2 2026 Sales Decline Amid U.S. Market Ban
Polestar reported second-quarter 2026 retail sales of 17,296 vehicles, a 4% decline from the same period last year, as the Swedish EV maker faces a U.S. market ban starting with the 2027 model year due to the Commerce Department's Connected Vehicle Rule restricting Chinese software and hardware. First-half sales totaled 30,423 cars, up 0.4% year-over-year. CEO Michael Lohscheller noted the retail network grew 39% to 235 sites, with Polestar 5 deliveries beginning and Polestar 4 production underway. The company announced its U.S. exit in late June, redirecting focus to Europe. Polestar faces mounting financial pressure, posting a Q1 net loss of $383 million, more than double the prior year's loss, as U.S. and EU tariffs and pricing pressure drove gross margin negative. Existing U.S. stock of Polestar 3 and 4 remains available, and service network access continues.
Yahoo FinanceUS Bans EV Maker Polestar Over Connected Vehicle Technology Linked to China
Premium electric vehicle maker Polestar is abandoning the U.S. market after the Department of Commerce's Bureau of Industry and Security did not grant it authorization to sell vehicles from model year 2027 onwards, due to connected vehicle technology linked to China. The ban falls under the Connected Vehicle Rule restricting import and sale of cars with China or Russia-linked tech. Polestar will continue selling existing stock of Polestar 3 and Polestar 4 EVs in the U.S., and will support existing customers. The company will concentrate on the European market, which accounts for 80% of its retail sales, and plans to localize manufacturing of future models like the Polestar 7 in Europe. Polestar is also expanding into Baltic markets (Estonia, Latvia, Lithuania). The move follows Volvo Cars (also owned by Geely) receiving permission to continue U.S. operations. The U.S. market accounted for just 6% of Polestar's global sales.
Yahoo FinancePolestar Banned from US Market Under Rule Targeting China-Linked Connected Vehicles
Polestar announced on June 26, 2026, that the Trump administration is forcing the electric vehicle maker to stop selling vehicles in the U.S. starting with the 2027 model year. The Commerce Department's Bureau of Industry and Security (BIS) denied Polestar authorization under the Connected Vehicles Rules, which restrict importation and sale of cars with connected vehicle technology linked to China due to national security concerns over data collection. The rule was first adopted in January 2025 under the Biden administration and remains in effect under President Trump. Polestar CEO Michael Lohscheller stated the company will focus on Europe as its largest growth engine, with plans to manufacture the Polestar 7 in Europe. Polestar, based in Sweden but majority-owned by China's Geely Holding, will continue selling existing stock of Polestar 3 and Polestar 4 vehicles in the U.S. and support customers through its service network.
Yahoo FinancePolestar barred from future US sales under Chinese tech rules
The Business Times reports that Polestar, an electric vehicle (EV) maker with Chinese ownership ties, has been barred from future sales in the United States. The ban is based on new US rules aimed at blocking connected vehicles that incorporate Chinese software, hardware, or ownership links, citing national security concerns. Polestar stated it will continue to sell its existing inventory of Polestar 3 and Polestar 4 models and will provide service to current customers. The rules represent a significant escalation in US-China trade tensions impacting the automotive sector.
The Business TimesPolestar Barred from Future US Sales Under Chinese Tech Rules
Polestar, the electric vehicle brand owned by China's Geely and Sweden's Volvo, has been barred from future sales in the United States under new U.S. regulations targeting Chinese technology. The rules, enacted on national security grounds, prohibit the sale of connected vehicles that use Chinese software, hardware, or have ownership ties to China. Polestar stated it will continue selling its existing inventory of Polestar 3 and Polestar 4 electric vehicles and will continue servicing current customers. The decision represents a significant market restriction for the brand in the U.S. and underscores escalating tensions over technology and automotive supply chains between the U.S. and China.
The Business TimesEuropean electric carmaker Polestar banned from US over China links
European electric carmaker Polestar will be forced to stop selling cars in the US from 2027 under new US import restrictions targeting Chinese software and hardware in connected vehicles. The rules, enforced by the Commerce Department under the Trump administration, block any car using Chinese technology that connects to the outside world, citing national security concerns. Polestar, Swedish-based but majority-owned by China's Geely, is the first European automaker affected. The ban covers models produced in South Carolina and South Korea, not just those made in China. Polestar CEO Michael Lohscheller said the company will pivot to focus on Europe, which accounts for 78% of sales versus 6% in the US. Volvo, also owned by Geely, received an exemption in May. The decision raises concerns for other Western automakers collaborating with Chinese tech companies.
Yahoo FinancePolestar banned from U.S. EV market over Chinese ownership
Polestar will no longer sell cars in the U.S. after the Commerce Department denied authorization under the Connected Vehicle Rule, which restricts vehicles with Chinese software or hardware. The Swedish EV maker, owned by Chinese automaker Geely, cannot market or sell new model-year 2027 vehicles. Polestar stock fell over 13%. The company plans to sell remaining inventory of Polestar 3 and Polestar 4, then wind down U.S. operations and focus on Europe. Notably, Volvo, also Geely-owned, was granted authorization. Polestar reported a first-quarter net loss of $383 million, more than double the prior year, as tariffs and pricing pressure weighed on margins.
Yahoo FinancePolestar exits US market after government bans sales due to connected vehicle technology
Swedish EV-maker Polestar (PSNY) announced it will cease selling cars in the US after the Commerce Department denied authorization under the new Connected Vehicle Rule, which restricts software and hardware from Chinese and Russian entities due to data security concerns. The ban, effective for new model-year 2027 vehicles, specifically targets Polestar's Chinese ownership by Geely. While Volvo, also owned by Geely, received a waiver after constructive discussions with US officials, Polestar was unable to get approval. The company will wind down US operations and focus on the EU market. Existing owners will continue to receive support and warranty service. Polestar stock fell over 10% on the news.
Yahoo FinancePolestar says Trump administration forcing it to end US sales
Polestar announced on June 25, 2026, that the Trump administration is forcing it to stop selling vehicles in the United States starting with the 2027 model year, due to the Connected Vehicles Rule. The rule, adopted under President Biden and maintained by Trump, restricts import and sale of cars with connected-vehicle technology linked to China, citing national security concerns over data collection. Polestar, majority-owned by China's Geely Holding, had warned since 2024 that the rules would effectively prohibit its US sales. Only 6% of its first-quarter sales came from the US, compared to 78% from Europe. CEO Michael Lohscheller said the company is pivoting toward Europe, planning to manufacture the Polestar 7 there. Polestar will continue selling existing models and servicing its network. The decision raises questions about the Polestar 3, its only US-manufactured model, produced by Volvo Cars in South Carolina. Shares fell 5.7% following the announcement.
Yahoo FinancePolestar says Trump administration forcing it to end US sales
Polestar announced on June 25, 2026, that the Trump administration is forcing the electric-vehicle maker to stop selling vehicles in the United States starting with the 2027 model year. The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicles Rule, which restricts import and sale of cars with connected-vehicle technology linked to China, citing national security concerns over data collection on American owners. The rule, adopted under President Biden in January 2025 and retained by Trump, targets Chinese-linked vehicles. Polestar, majority-owned by China's Geely Holding, said it will continue selling existing Polestar 3 and 4 models and maintain service access. The company has pivoted toward Europe, where 78% of its first-quarter sales occurred, versus only 6% in the U.S. Polestar has struggled with profitability and declining share price, requiring capital injections from Geely. The decision raises questions about the future of the U.S.-manufactured Polestar 3 and Volvo Cars' production plans.
Yahoo FinanceTrump Administration Bars Polestar from Selling New EVs in the US
The Trump administration's Department of Commerce has denied Swedish electric vehicle maker Polestar, owned by China's Geely, special authorization to sell its new cars in the US under the 'Connected Vehicle Rule,' which restricts vehicles with Chinese software or hardware. Polestar will continue selling its existing Polestar 3 and 4 models and support current customers. The company noted that 94% of its first-quarter 2026 retail sales came from outside the US and said it is shifting strategic focus to Europe. The decision contrasts with a recent authorization granted to sibling company Volvo, also owned by Geely, to sell connected cars in the US.
Yahoo FinanceUS cranks up pressure on China EVs with Polestar ban
The Trump administration has forced Polestar, the Sweden-based electric vehicle maker majority-owned by China's Geely Holding, to stop selling vehicles in the United States starting with the 2027 model year. The U.S. Commerce Department denied authorization under the Connected Vehicles Rule, which restricts import and sale of cars with connected-vehicle technology linked to China due to national security concerns about data collection. Polestar will continue selling existing Polestar 3 and Polestar 4 models in the U.S. and service existing vehicles but will not appeal. The company is pivoting to Europe, which accounted for 78% of first-quarter sales, compared to just 6% from the U.S. Polestar has struggled to turn a profit and required capital injections from Geely. The ban is part of broader U.S. efforts to strengthen domestic carmaking and restrict Chinese vehicle imports.
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