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This carmaker says the Commerce Department is banning US sales of its cars

Polestar will sell remaining U.S. inventory and keep servicing owners after the denial, while shifting future growth to Europe.

  • On Thursday, the U.S. Commerce Department denied Polestar authorization to sell vehicles in the United States starting with the 2027 model year, citing national security concerns regarding the Swedish manufacturer's ties to Geely Holding.
  • The Biden-era Connected Vehicle Rule prohibits sales of cars with software linked to China or Russia; while the Commerce Department granted a waiver to Volvo Cars, it denied Polestar's similar request.
  • None of the vehicles sold in the United States are built in China; the Polestar 3 is produced in South Carolina and the Polestar 4 in South Korea, yet dealers will continue selling existing stock with full warranty support.
  • Polestar CEO Michael Lohscheller announced a strategic shift toward Europe, where the company generates nearly 80 percent of its sales; Matthew Haiken, owner of Polestar Short Hills in New Jersey, told Automotive News he was "absolutely devastated."
  • This exit signals a fractured era for the auto industry, though Waymo—which uses Geely-built vehicles—does not expect similar scrutiny for its autonomous fleets; Washington's hostility toward Chinese-linked technology will likely persist regardless of congressional control.
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This carmaker says the Commerce Department is banning US sales of its cars

This electric vehicle maker says the Commerce Department is banning US sales of its cars

·New Hampshire, United States
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Axios broke the news in Washington, United States on Thursday, June 25, 2026.
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