Polestar says it will no longer be able to sell new cars in the United States beginning with the 2027 model year. The Department of Commerce did not authorize the automaker to continue selling vehicles under the country’s new Connected Vehicles Rule, which targets connected-car technology linked to China or Russia.

The decision affects future US sales rather than every Polestar already in the country. Polestar will continue selling existing inventory of the Polestar 3 and Polestar 4, while maintaining access to its US service network.

Why Polestar cannot sell 2027-model-year cars

The Connected Vehicles Rule was announced in 2025 and is scheduled to apply beginning with the 2027 model year. Under the regulation, the import and sale of certain connected vehicles associated with China or Russia can be restricted without government authorization.

Polestar is owned by Volvo and Geely Holding Group, the Chinese corporation that operates Geely Auto. The automaker said the Department of Commerce did not grant it the authorization required to sell vehicles in the US under the new rules.

The development does not mean every company with a China connection faces the same outcome. Volvo received authorization to import and sell vehicles at the end of May. Reuters has also reported that Ford is seeking authorization for its China-built Lincoln Nautilus SUV.

What happens to Polestar 3 and Polestar 4 buyers

Polestar’s current plan leaves the Polestar 3 and Polestar 4 available until existing US stock is sold. The company also said owners will continue to have access to its service network, an important detail for customers considering one of the remaining vehicles.

The announcement does not provide a specific date for when US inventory will run out, nor does it say whether Polestar will pursue another authorization or change how future vehicles are connected and sold. For now, buyers looking at a new Polestar in the US will be limited to cars already in the country or in the sales pipeline.

Polestar’s US exit in context

Polestar said 94 percent of its retail sales in the first quarter of 2026 came from outside the American market. That means the US decision affects a minority of the brand’s global sales, although it removes one of its most visible markets for future model-year vehicles.

The situation also illustrates how the new US rule could separate automakers’ global sales plans from their ability to sell connected vehicles in America. Companies with Chinese-linked technology, ownership or production arrangements may need individual authorization before continuing US sales for affected model years.