The U.S. Department of Commerce confirmed what electric vehicle maker Polestar warned its dealers about in 2024: the company cannot sell vehicles in the United States after the 2026 model year.
The move, which came under the Biden administration, but has since been confirmed by the Trump administration, is a result of the Connected Vehicles Rule, which places a ban on vehicles with Chinese-linked Bluetooth, cellular, Wi-Fi, and certain satellite systems from being sold in this country in the name of national security.
Polestar currently produces the Polestar 3 in Ridgeville, South Carolina, just outside of Charleston. The company was looking to mitigate its tariff risk with the $1.3 billion investment. While the location was fine, the technology inside the vehicle was not. The company builds the vast majority of its vehicle in China with some production of the Polestar 4 in Busan, South Korea.
“The automotive industry is entering a new phase, based on regional dynamics,” said Michael Lohscheller, Polestar CEO, in a release. “Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe.
“Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada.”
Polestar can sell the remainder of its existing stock of Polestar 3 and Polestar 4 models in the U.S., but none of the models the Volvo spinoff has been promoting will be available in the U.S. According to the automaker, nearly 80 percent of its sales came from Europe and other markets last year. That figure rose to 94 percent in the first quarter.
The company’s lineup currently comprises four models: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Updates to the Polestar 4 and a successor to the Polestar 2 were due to arrive in the U.S. in the fourth quarter of this year and first quarter of 2027. The Polestar 7 compact SUV was set to be introduced in 2028 with the Polestar 6 roadster.
With its vehicles currently manufactured on two continents, North America and Asia, Polestar plans to diversify its manufacturing footprint further, with production of Polestar 7 planned in Europe. Polestar is headquartered in Gothenburg, Sweden, and sells vehicles in 31 markets globally across North America, Europe and Asia Pacific. It’s owned primarily by China’s Geely Holdings.
[Images: Polestar]
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via Autobuzz Today
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