Polestar to exit U.S. new-car sales from model year 2027 after Commerce denial under Connected Vehicle Rule

The U.S. Commerce Department has declined to authorize Polestar (Nasdaq: PSNY) to sell model year 2027 and later vehicles in the United States under the Connected Vehicle Rule that took effect in January 2025. The decision bars the Geely-owned Swedish EV brand even though the Polestar 3 is assembled in South Carolina, because the rule targets vehicles deemed to have a “sufficient nexus” to China. Polestar said it will continue selling existing inventory of the Polestar 3 and Polestar 4 and support current owners through its service network. The move increases pressure on profitability as the U.S. accounted for 6% of its Q1 2026 sales and the company reported a -3.2% gross margin.