Polestar has announced that it’s leaving the United States market after the 2027 model year amid ongoing political tensions (or drama, as I call it) with China.
Earlier today, Polestar said that it was leaving the U.S. market but would continue to sell its existing stock. It will also continue to support Polestar owners in the United States even after it leaves. The decision was made after the U.S. Department of Commerce issued the “Connected Vehicle Rule,” which prohibits the sale of vehicles manufactured or owned by entities connected to China or Russia.
While Polestar is based in Europe, it’s owned by Chinese automaker Geely. Volvo, also owned by Geely, was authorized to continue selling its cars in America following a discussion with the U.S. Department of Commerce to obtain specific approval regarding Volvo’s technology and data security. Polestar was not given this authorization.
The reason why wasn’t mentioned, but it could have helped that Volvo has headquarters in New Jersey and states that the U.S. is one if its biggest markets. Meanwhile, Polestar isn’t particularly concerned, noting that 94% of its first-quarter sales were outside the United States anyway.
What will happen to those new Polestar models coming out?
Currently, Polestar sells two models in the United States, the 3 and 4. Existing inventory will continue to sell.
Meanwhile, Polestar previously announced pretty big plans for 2027, including four new (confusingly named) vehicles. The entirely new Polestar 5, a grand touring sedan, and 6, a roadster, won’t be coming to the United States anymore.
“The automotive industry is entering a new phase, based on regional dynamics,” Polestar CEO Michael Lohscheller said in a statement. “Our strategy reflects that, with Europe being our largest growth engine, and our plan to manufacture Polestar 7 in Europe.”
In 2025, Polestar saw record sales of its EVs, totaling 60,119 vehicles. Most were not sold in the United States. The carmaker has gone into 2026 with similarly strong numbers, largely in Southeast Asia, Eastern Europe, Latin America, and Canada. This is where they will continue to invest.
