Polestar Will Exit the U.S. Market in 2027
Chinese ownership dooms Swedish performance EV maker.
Polestar is shifting its strategic focus toward Europe following a U.S. government decision that will prevent the automaker from selling new vehicles in the U.S. beginning with the 2027 model year.
The Gothenburg, Sweden-based EV manufacturer announced today (June 25) that the U.S. Department of Commerce's Bureau of Industry and Security declined to grant the company an exemption under the Connected Vehicle Rule (CVR). As a result, Polestar will be unable to sell vehicles in the U.S. beginning with model year 2027. CVR is a U.S. national security policy that bars companies from selling cars that feature hardware/software that is tied to countries such as China or Russia. Polestar is owned by Chinese conglomerate Geely.
Polestar said it will continue selling existing inventory of the Polestar 3 and Polestar 4 in the U.S. while maintaining customer support and access to its service network.
“Supporting our customers remains our highest priority. Existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today. All existing warranties remain in effect and will continue to be honored in accordance with their terms and conditions,” Polestar North America’s official spokesperson said. He also confirmed no future Polestar vehicles, including the Polestar 5 grand tourer we just drove, will come to the U.S.
Europe-Focused Strategy
The company said the move reinforces its strategy of concentrating on Europe, which accounted for nearly 80 percent of its retail sales volume. During the first quarter of 2026, 94 percent of Polestar's global retail sales came from markets outside the U.S.
As part of its revised strategy, Polestar plans to expand its European retail network and localize production of future models. The company previously announced that the upcoming Polestar 7 compact SUV will be built in Europe.
“The automotive industry is entering a new phase, based on regional dynamics,” Polestar CEO Michael Lohscheller said. “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.”
Looking ahead, Polestar said deliveries of the new Polestar 5 will begin this summer, but obviously not for U.S. customers. A new variant of the Polestar 4 is scheduled to arrive during the second half of 2026, followed by a next-generation Polestar 2 in 2027 and the Polestar 7 compact SUV thereafter.
What About Volvo?
In May, fellow Geely-owned brand Volvo received authorization under the CVR to continue selling cars in America, so it appears to be business as usual for 2027. Compliance to CVR is evaluated annually, so stay tuned.
