POLESTAR EXITS US MARKET OVER CHINESE SOFTWARE BAN

The decision stems from a federal rule prohibiting vehicles with Chinese-connected vehicle software. Despite Polestar's attempts to secure continued authorization, regulators denied the company's request, forcing the exit. Thousands of current Polestar owners now face questions about long-term service, warranty support, and software updates. The company has not detailed plans for existing vehicles or customer assistance programs. Polestar, majority-owned by China's Geely, has been ramping up US operations since 2021 with models like the Polestar 2 and Polestar 3. The pullout marks a significant setback in the EV maker's North American expansion and highlights growing regulatory scrutiny around foreign-made vehicle technology. The 2027 timeline gives Polestar roughly three years to wind down US operations. Industry observers expect the company to shift focus to European and Asian markets where regulatory restrictions are less stringent.