Polestar will stop selling vehicles in the United States starting with the 2027 model year after the US Commerce Department denied an authorization that would have allowed the brand to continue sales despite a federal rule restricting Chinese-made connected-vehicle technology, according to WIRED.
The Connected-Vehicle Rule and Its Impact
The Commerce Department under the Biden Administration officially approved the connected-vehicle rule in January 2025, citing national security concerns over internet-connected automotive cameras, microphones, and GPS equipment from Chinese and Russian sources. At the time, Commerce Secretary Gina Raimondo stated: “It doesn't take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of US citizens.” The rule banned the sale of vehicles with Chinese- or Russian-made hardware and software for connected systems. Polestar, majority-owned by China's Geely Holding and its founder Li Shufu, was denied authorization in late June, the company said. The US Commerce Department did not respond to WIRED’s questions.
Dealer Investments and Reaction
Polestar Short Hills, a dealership in northern New Jersey owned by Matthew Haiken of the Prestige Collection Auto Group, opened in 2021. Haiken also owns three other non-Polestar dealerships. He told WIRED that he and the owners of the US’s other 31 Polestar dealerships have invested “many millions” in selling the cars and called the authorization decision “a shock to me and all the dealers.” Haiken remarked on the broader challenge: “It's so unfortunate. It's hard for my customers who have been reaching out; it's hard for my staff.” He also expressed frustration with Polestar itself: “I am very frustrated in Polestar, globally. I think they really dropped the ball, and I blame them. I don't blame the government.”
Why Volvo Received Authorization
Volvo, also majority-owned by Geely, received authorization from the Commerce Department in March, allowing it to continue selling vehicles in the US. Volvo said it held “constructive discussions” with the department about its “governance, technology and data security.” When asked about the discrepancy, a Polestar spokesperson said the company “cannot comment on how legislation applies to other manufacturers.”
Polestar’s Strategic Shift and Sales Details
Polestar said in a statement that US dealerships would sell “existing stock” of the Polestar 3 and Polestar 4 and that a US service network would “continue to support customers.” The company framed the move as “increasing its strategic focus on Europe” and noted that 94 percent of Polestar’s first quarter 2026 sales took place outside the US. Haiken called that statistic misleading because the Polestar 4 coupe went on sale in Europe in January 2024 but wasn’t available in the US until December 2025. Polestar spokesperson Mike Ofiara wrote that Polestar “greatly values our retail partners and is working closely with them to manage this transition.”
Future of Service and Dealerships
Some Polestar dealerships handle service through Volvo centers, but Haiken said his stand-alone Polestar service center will continue fixing and servicing EVs. “We have the volume to justify it. We have to be around to perform that work.” He noted that not all dealerships might make the same decision, though vehicles will likely be sent to the closest service center for tune-ups and fixes. The cessation of US sales represents a major disruption for Polestar’s retail network and raises questions about the long-term viability of standalone Polestar stores.
Production Timeline
Polestar will stop selling vehicles in the US beginning with the 2027 model year. Until then, dealers will sell existing stock of the Polestar 3 and Polestar 4. Service support will continue through a US network.
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