Polestar Halts US Car Sales From 2027 After Commerce Denies Authorization

Q: What is the fate of Polestar's American factory now that its future models are banned?

Polestar’s U.S. factory is not shutting down; its role appears to be shifting away from serving future U.S. sales and toward broader production for other markets. The key plant is Volvo Cars’ factory near Charleston, South Carolina, where the Polestar 3 is built. Even though the Commerce Department’s decision blocks authorization for new Polestar model-year 2027 imports and effectively ends the brand’s future U.S. sales pipeline, available reporting indicates Volvo and Polestar had already been consolidating global Polestar 3 production at that South Carolina site. That means the factory can still build vehicles for export and for remaining approved sales, even if upcoming models such as the Polestar 5 and Polestar 6 will not be sold in the United States. The plant’s outlook is also supported by Volvo’s broader manufacturing plans. Volvo has invested heavily in the South Carolina facility and is adding other models there, including the XC60 and a future hybrid. So the site is not dependent on Polestar’s future U.S. lineup alone. What is uncertain is the long-term scale of Polestar-specific production in South Carolina if the U.S. market is no longer available for new Polestar models after MY2027. But based on the available information, the factory itself looks secure because it is a Volvo-led plant with multiple products and an expanding role, rather than a standalone Polestar facility whose fate rises or falls solely with U.S. Polestar sales.

3 articles · Updated · Motor1 · Jun 25

Polestar said it will stop selling new cars in the United States starting with the 2027 model year after the Commerce Department refused authorization under the connected-vehicles rule.
The 2025 rule bars imports and sales of certain connected vehicles tied to China or Russia; Polestar is owned by Volvo and Geely, the Chinese parent of Geely Auto.
Existing US inventory of the Polestar 3 and Polestar 4 will still be sold, and the company said its service network will remain available.
94% of Polestar's first-quarter 2026 retail sales came from outside the US, underscoring how limited the market had already become for the brand.
Volvo won authorization in late May, while Ford is still seeking approval for its China-built Lincoln Nautilus, showing the rule's wider impact on automakers.

Sources

Left60%

Center20%

Right20%

Motor1 5h ago

Polestar to Cease US Car Sales from 2027 Due to Connected Vehicles Rule

The Wall Street Journal5h ago

U.S. Bans Polestar, Chinese-Owned EV Maker, From Selling Cars in the U.S. - WSJ

AOL5h ago

U.S. Automakers Need Approval To Keep Selling China-Built Vehicles - AOL

8 Sources

What is the fate of Polestar's American factory now that its future models are banned?

Why can Geely-owned Volvo sell cars in the US, but its sibling brand Polestar cannot?

Which global car brands are next to be banned as vehicles become rolling data centers?

U.S. Connected Vehicle Rule Forces Polestar Out: Regulatory, Market, and Geopolitical Fallout for Automakers

Overview

Polestar is winding down its U.S. operations after the Department of Commerce denied it authorization to sell new vehicles starting with the 2027 model year. Despite Polestar's active efforts to meet regulatory requirements, these attempts were unsuccessful, unlike Volvo—also owned by Geely—which received approval to continue U.S. imports. In the short term, the impact on Polestar’s global sales is limited, as 94% of its sales already come from outside the U.S. This strategic shift highlights how regulatory decisions and ownership structures can shape market access and force companies to refocus on other regions.

...