Polestar withdraws from the US market: Ban on connected Chinese vehicles takes effect

The ban is part of the so-called Connected Vehicle Rule, which restricts the import and sale of connected vehicles and vehicle technology with ties to China or Russia. The US government justifies this with risks to national security, such as access to vehicle data or connected systems.

Background: The Connected Vehicle Rule

Impact on already imported vehicles

Consequences for Polestar and the US market

The decision hits Polestar in an already difficult market environment. The company is already focused primarily on Europe and other regions. According to company figures, about 80 percent of sales come from Europe, and in the first quarter of 2026, as much as 94 percent of sales came from markets outside the United States.

Polestar announced that it would focus more strongly on Europe in the future. The company is responding directly to the loss of the US market and is seeking growth in a region where the brand is already strongly positioned. „Polestar will sich nun stärker auf Europa konzentrieren.

Exceptions and comparison with Volvo

Existing inventory of the Polestar 3 and Polestar 4 models is to continue being sold in the United States. This gives the company a transition period in which existing stock can still be worked down before the full ban takes effect.

Starting with the 2030 model year, the US government is extending the ban to imports of relevant hardware for vehicle connectivity. This essentially affects spare parts for connected vehicle systems, further complicating long-term maintenance and service in the United States.

International trade conflicts with China

Volvo, Polestar's sister company within the Geely Group, has, by contrast, received an exemption and can continue offering its models in the United States. The difference lies in each brand's respective ties to China and in the share of Chinese components used in the vehicles.

Polestar is listed on the US Nasdaq stock exchange, but the company's headquarters are located in Gothenburg, Sweden. While the US stock listing therefore remains in place, distribution of new vehicles on the US market will end with the 2027 model year.

The decision fits in with a tougher US stance toward Chinese electric cars and connected vehicle technology. Washington wants to keep such vehicles and components further away from its own market due to security concerns. The EU has likewise imposed countervailing duties on battery-electric cars from China, further intensifying the debate over how to handle Chinese electric vehicles in Europe as well.