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Polestar states US rejected request to sell electric vehicles under connected-software rules

The decision bars the automaker from selling new vehicles in the United States starting with the 2027 model year.

The short version

  • Polestar informed dealers that the Trump administration denied its application to sell electric vehicles under rules banning connected vehicle software from China.
  • The U.S. Commerce Department cited national security concerns for the ban, which takes effect starting with the 2027 model year.
  • Polestar stated it was not given a clear rationale for the denial, noting its sister brand Volvo received authorization in May 2026.

Key facts

  • In an August 18th letter to dealers, Polestar disclosed that the federal government rejected its request to continue U.S. sales under regulations restricting Chinese connected-vehicle software.[The Verge]
  • The Commerce Department's decision will block Polestar from selling new vehicles in the U.S. beginning with the 2027 model year.[The Verge]
  • Polestar noted that sister company Volvo received approval from the U.S. Department of Commerce in May 2026 despite having similar corporate ownership structure.[The Verge]

What remains uncertain

  • The specific grounds for denying Polestar's application while approving Volvo's remain undisclosed by regulators.[The Verge]

Sources