Polestar Banned from US Market Over Chinese Connectivity Rules

Image: Polestar Media

Polestar has confirmed it will no longer be able to sell new vehicles in the United States from the 2027 model year, after the US Department of Commerce’s Bureau of Industry and Security formally banned the brand under the new Connected Vehicle Rule.

Why Polestar Was Targeted

The rule targets vehicles with hardware or software linked to China or Russia, citing national security risks. Polestar, owned by Chinese automotive giant Geely, builds its 2, 4, and new 5 saloon in China, placing all three squarely in the crosshairs of the regulation. Even the Polestar 3 SUV, which is manufactured in the United States, will not be exempt from the ban.

What Happens to US Customers

Polestar has confirmed it will continue to sell existing stock of the 3 and 4 in the US until supplies run out, and has committed to ongoing service support for existing customers after its market exit. The US currently accounts for just six per centof Polestar’s global retail sales, limiting the financial impact of the exit on the brand overall.

What’s Next for Polestar

CEO Michael Lohscheller struck a forward-looking tone in response, pointing to Europe as the brand’s primary growth engine and confirming expansion plans across Southeast Asia, Eastern Europe, Latin America, and Canada. He also confirmed a new high-riding estate variant of the Polestar 4 is planned for the second half of 2026, followed by an all-new Polestar 2 in 2027, and the upcoming Polestar 7 compact SUV thereafter.

What This Means for Australia

For Australian buyers, the ban has no direct impact, Polestar continues to operate freely in this market. However, the development signals a broader shift in how Western governments are approaching Chinese-linked automotive technology, a trend that may eventually shape which vehicles are available globally.