Polestar says US blindsided it with sales ban under connected-vehicle rules

Electric vehicle maker Polestar has been barred from selling new cars in the United States starting with the 2027 model year, following a rejection by the Commerce Department citing national security concerns over connected-vehicle software linked to China. In an August 18th letter to dealers, Polestar said it was given no clear explanation for the denial after months of engagement with the Trump administration. The company expressed confusion over the decision, noting that its sister company Volvo received approval to continue US sales in May 2026 despite having similar corporate ownership ties. The ban stems from a federal rule prohibiting vehicles that use connected software originating from China. Polestar said it does not yet have a clear path forward regarding its US market presence.