Polestar has lost the ability to sell new cars in the United States after the 2027 model year. The U.S. Department of Commerce’s Bureau of Industry and Security denied the electric vehicle manufacturer, owned by the Chinese group Geely, the necessary permit to continue sales in the American market. The reason was a violation of the so-called “Connected Vehicle Rule.” The company’s shares fell more than 5% during pre-market trading.
Reasons for the ban and market reaction
The U.S. government’s decision is based on national security concerns related to the use of Chinese-origin technology and software in vehicles. The “Connected Vehicle Rule” aims to limit risks associated with data transfer and potential remote access to vehicles by foreign states. This decision was a serious blow to Polestar, which was actively expanding its presence in the U.S. market.
Consequences for the company
The loss of access to the American market is a significant obstacle to Polestar’s ambitious plans. The company has already faced financial difficulties and declining demand for electric vehicles in other regions. The ban on selling new cars after 2027 will force Polestar to reconsider its strategy, possibly focusing on other markets such as Europe and Asia, or seeking ways to localize production in the United States.
This is a developing story.
The situation around Polestar is part of a broader geopolitical context where the technological rivalry between the U.S. and China directly impacts the global automotive market. Other Chinese manufacturers, such as BYD, may also face similar restrictions, accelerating the regionalization of electric vehicle production. For Polestar, this means an urgent need for adaptation: either through building plants in North America or seeking strategic partnerships with local companies to circumvent regulatory barriers. At the same time, the drop in shares indicates low investor confidence in the company’s ability to quickly resolve this issue without significant financial losses.