The United States has denied Polestar authorization to sell vehicles in the country from model year 2027 onward, effectively preventing the Sweden-based electric vehicle maker from introducing new models into the US market.
The decision stems from enforcement of federal rules targeting connected-vehicle systems tied to Chinese-linked companies, including requirements for government approval for future model-year certifications, Reuters reported.
Polestar, which is majority owned by China's Zhejiang Geely Holding Group, said it will continue selling existing inventory of the Polestar 3 and Polestar 4 in the United States while maintaining service and support operations for current customers.
The company said the decision blocks it from certifying future model-year vehicles, limiting its ability to introduce updated or next-generation models into the US market beginning in 2027.
Shares of Polestar fell more than 8% following the announcement, reflecting investor reaction to restricted access to one of the world's largest automotive markets, CNBC noted.
Industry-wide, automakers have been adjusting compliance filings and restructuring supply chains to meet the same connected-vehicle requirements that begin affecting model-year approvals from 2027, the Wall Street Journal reported.
Polestar has already been shifting its sales focus toward Europe and other international markets, with most of its revenue generated outside the United States, Financial Times reported.
Chief Executive Michael Lohscheller said the company's strategy reflects a more regional automotive industry structure, with Europe positioned as its primary growth market and future production increasingly centered there.
The company's US manufacturing footprint includes production of the Polestar 3 in South Carolina, though the new restriction applies to future model-year certification rather than existing vehicle sales.
