Polestar banned from the United States: the connected car war begins

Victim of its Chinese origins, Polestar is banned from selling its vehicles in the United States starting in 2027.

This is a heavy blow from Washington. The Bureau of Industry and Security of the U.S. Department of Commerce has denied Polestar the authorization to sell its vehicles on American soil starting from the 2027 model year. The reason: the famous Connected Vehicle Rule, an anti-espionage regulation that targets any connected vehicle incorporating software or components from China or Russia. However, Polestar, although registered in Gothenburg, is mainly owned by the Chinese giant Geely, and that was enough to raise all the red flags concerning U.S. national security.

The decision is all the more paradoxical as Polestar manufactures its SUV Polestar 3 in a factory in South Carolina since 2024, producing cars on American soil that are now… banned from sale in the United States. An unprecedented case in automotive history. The company’s stock immediately dropped by more than 12% on the stock market following the announcement.

Volvo spared, Polestar sacrificed.

The apparent injustice is all the more glaring as Volvo, a sister brand also controlled by Geely, received a waiver last May. Why this difference in treatment for two brands sharing the same technical bases? The question remains unanswered officially and fuels accusations of arbitrary decision-making with a geopolitical character.

On Polestar’s side, they are trying to maintain a façade of calm. CEO Michael Lohscheller reminds us that the United States only represented 6% of global volumes in the first quarter of 2026, and that 94% of sales are already conducted elsewhere in the world. The brand is resolutely pivoting towards Europe, which already accounts for 80% of its sales, and announces the future local manufacturing of the Polestar 7 on the Old Continent. Existing stocks of Polestar 3 and 4 will continue to be sold in the United States, and the after-sales service network will remain operational.

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This ban nevertheless sets a significant precedent. After Polestar, who will be the next target? BYD, Chery, Lotus — all brands linked to China are watching this issue with concern, as Washington turns automotive regulations into a diplomatic weapon.

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