Polestar will no longer sell its cars in America following actions by the Commerce Department. This news comes just nine years after the Polestar 1 plug-in hybrid was released in October 2017.
The company is jointly owned by Swedish automaker Volvo and multinational tech and automotive conglomerate Geely Holding Group.
Here’s why Polestar won’t sell its vehicles in America anymore and why they may not be missed.
Why Isn’t Polestar Selling EVs in America Anymore?
Polestar is no longer selling cars in America because the U.S. Department of Commerce’s Bureau of Industry and Security didn’t grant the company an authorization to sell vehicles from the 2027 model year onward. The Department of Commerce is banning connected vehicle systems with Russian or Chinese software. This ban will extend to hardware in 2030.
U.S. Secretary of Commerce Gina Raimondo calls this a “necessary step to safeguard U.S. national security and protect Americans’ privacy by keeping foreign adversaries from manipulating these technologies.” Since Polestar is partially owned by Geely Holding Group, headquartered in China, it qualifies for the ban.
The move is part of a broader crackdown on Chinese vehicles in Washington, according to Reuters. Chinese electric vehicles from brands like BYD and Geely have been on an international sales hot streak because of their affordability and practical driving range.
The current administration has imposed strict tariffs on foreign parts and automobiles, championing domestic manufacturing and production. Polestar’s American ban may be big news to fans of the brand, but there are a few key reasons why the EV market may be unfazed by its sudden exit.
Why Polestar Won’t Be Missed in the American EV Market
Polestar says a whopping 94% of its first-quarter sales came from markets outside America. A Q1 sales report shows the brand only sold 13,126 units worldwide. Fewer than 800 Polestar units were sold in America in the first quarter despite the brand producing multiple nameplates.
If you aren’t one of the few thousand Polestar drivers in America who have purchased an EV from the brand in the last few years, the news of its departure means little given its limited sales success. In contrast, American EV brand Tesla has dominated electric vehicle sales with nameplates like the 2026 Tesla Model 3 and 2026 Tesla Model Y.
The best-selling EVs in America come from brands like Tesla, Hyundai, Chevrolet and Ford. There’s a huge margin between the sales success of Tesla EVs and other EVs that haven’t become nearly as popular.
Is Polestar the First of Many Auto Brands to Leave the Market?
Not many automotive brands are as exposed to the Department of Commerce’s authorization requirements as Polestar. On the other hand, many legacy American automakers rely on Chinese factories for labor and production of certain models.
Ford’s Lincoln Nautilus is one of the models impacted by the connected-car rule, according to Reuters. GM’s Buick Envision is also impacted since it’s built in China.
Entire brands may not be forced out of the American car market in a similar fashion to Polestar, but the event signals a major supply chain repositioning as the administration pushes harder for American auto production, from software to hardware.
Charles Singh is an Autos Connect Reporter for The Tennessean, part of the USA TODAY Network.
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