Polestar to Exit U.S. Market After 2027 Under Federal Rule

Polestar will leave the U.S. market after the 2027 model year following a federal decision that prevents the electric vehicle brand from importing its vehicles into the country. The move stems from the Connected Vehicles Rule, introduced in 2025 during the final days of President Joe Biden’s administration and now being enforced under the Trump administration. The regulation prohibits the import and sale of vehicles equipped with connected-vehicle technology tied to China or Russia beginning with the 2027 model year.

Although Volvo was granted approval in May to continue selling its full lineup in the United States, the exemption did not extend to Polestar. While Volvo remains a Swedish automaker, its majority owner is China’s Geely Holding, the parent company of Geely Auto. Because of Polestar’s ownership structure, the company confirmed it will effectively withdraw from the U.S. once the current regulatory timeline takes effect.

Before its departure, Polestar plans to consolidate production of the Polestar 3 at its manufacturing facility in South Carolina while ending imports of vehicles built at its Chengdu, China, plant. The automaker will continue selling its existing inventory of Polestar 3 and Polestar 4 models in the United States and will maintain service and support for vehicles already on the road.

The policy change also disrupts Polestar’s future product plans for the American market. The company had intended to launch the Polestar 7 and a new Polestar 4 variant later this year, followed by an updated Polestar 2 sedan in 2027. The planned Polestar 5 sedan and Polestar 6 roadster will also no longer be introduced in the United States.

Outside the U.S., Polestar will continue its global operations. Company data shows that 94% of its first-quarter sales came from markets beyond the United States, with nearly 80% of total sales generated in Europe. Explaining the company’s direction, CEO Michael Lohscheller said, “The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe.” He added that the company will continue investing in growth markets including Southeast Asia, Eastern Europe, Latin America and Canada.

The decision adds another obstacle for Chinese-linked automakers seeking access to the U.S. market. Chinese-built electric vehicles are already subject to steep tariffs, while lawmakers are reportedly considering additional restrictions that could further limit their presence in the country.