Polestar Shifts Focus to European Market Amid US Exit Due to New Regulations

The US Connected Vehicle Rule has effectively barred Polestar from selling vehicles in the US market. The company is prohibited from importing any vehicles for the 2027 model year, leading to the cessation of sales in the United States. This regulation aims to prevent the sale of connected vehicles that utilize software linked to China or Russia.

Owned by Geely, a Chinese automotive manufacturer, Polestar incorporates Geely technology into its vehicles. Consequently, the US Department of Commerce's Bureau of Industry and Security has declined to grant Polestar an authorization to sell vehicles in the US from the 2027 model year onward.

In response to this restriction, Polestar has committed to intensifying its focus on the European market by expanding its sales network and preparing for the localization of future model manufacturing. According to an official press release, Europe currently accounts for nearly 80% of the company's retail sales volume.

Polestar plans to continue selling its existing inventory of the Polestar 3 and Polestar 4 in the US while also supporting current customers through its service network.

Polestar CEO Michael Lohscheller stated:

The automotive industry is entering a new phase, driven by regional dynamics. Our strategy reflects this shift, with Europe as our primary growth engine and plans to manufacture the Polestar 7 in Europe. Our record sales in 2025 and the first quarter of 2026 indicate significant progress, with numerous market launches scheduled in Europe this year. Additionally, we will continue to invest in emerging markets such as Southeast Asia, Eastern Europe, Latin America, and Canada. Polestar remains competitive against larger, more established companies, thanks to our impressive vehicles and expanding model lineup. The Polestar 5 has received outstanding feedback from global media, with customer deliveries expected to begin this summer. A new variant of our best-selling Polestar 4 is scheduled for release in the second half of this year, followed by the all-new Polestar 2 in 2027, and subsequently, the Polestar 7 compact SUV.