Polestar Just Got Kicked Out Of America - Here's Why It Can't Sell New EVs In The US Anymore
Seemingly as quickly as it entered the market, Polestar has made an exit. The EV-focused spinoff of Volvo announced today, June 25th, that it will be exiting the U.S. market. But it does not appear that the departure was voluntary.
A press release from Polestar states: "This follows a decision from the U.S. Department of Commerce's Bureau of Industry and Security to not grant Polestar an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S. from model year 2027 onwards." This means that new 2026 model year cars and anything made earlier is fine. But next model year gets the boot.
The Bureau of Industry and Security's Connected Vehicle Rule "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."
Polestar's headquarters are in Sweden, and it manufactured the Polestar 3 SUV in South Carolina. Polestar's parent company, Geely, is headquartered in China, a fact that likely sealed the deal for Polestar's American efforts.
Polestar moves to other shores
It would be a tremendous battle for Polestar to stay in the United States as it would have to fight both the U.S. Department of Commerce and low sales. The automaker noted that 94% of its sales come from outside the United States, so it was a very small market to begin with. Europe, according to Polestar, is the biggest market. With the departure from the States, Polestar is setting its eyes on Canada and South America as its next markets.
It's unfortunate that politics ultimately barred Polestar from selling cars in the United States. SlashGear reviewed a number of different models over the years, including the Polestar 4 SUV and Polestar 2 and found the cars themselves to be compelling alternatives to EV giants like Tesla. The company also showed promise in DC fast-charging technology. It's another blow to the idea of EVs flourishing in the U.S.