Electric carmaker Polestar will be barred from selling new vehicles in the United States starting with the 2027 model year after the Commerce Department cited national security concerns under new connected-vehicle regulations. Polestar claims the Trump administration misled it about the timeline and requirements.
The Commerce Department's decision blocks Polestar from distributing vehicles domestically, marking a significant blow to the Swedish-Chinese automaker's US operations. The ban falls under newly implemented connected-vehicle regulations that restrict sales of cars with certain wireless capabilities deemed potential national security risks.
Polestar stated it was blindsided by the decision after months of discussions with the administration. The company alleged officials strung negotiations along without clearly communicating the ban was imminent or providing adequate opportunity to comply with new standards.
The move reflects ongoing tensions between the US government and Chinese-affiliated automotive companies over data collection and vehicle connectivity. Polestar, owned by Geely and Volvo, has positioned itself as a premium EV brand targeting American consumers. The sales prohibition could force the company to abandon its US market strategy unless it successfully challenges the decision or restructures its vehicle technology to meet regulatory requirements.
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