Polestar exits US market after government bans sales due to connected vehicle tech
Key takeaways
- Polestar exits US market after government bans sales due to connected vehicle tech Guests look at the Polestar 4 electric SUV at the New York International Auto Show Press Preview in New York City on March 27, 2024.
- The Connected Vehicle Rule targets data security concerns by restricting the use of certain foreign technologies in two areas.
- Polestar stock was down by more than 13% in midday trade.
Polestar exits US market after government bans sales due to connected vehicle tech Guests look at the Polestar 4 electric SUV at the New York International Auto Show Press Preview in New York City on March 27, 2024. (Reuters/David Dee Delgado) · Yahoo Finance · REUTERS / Reuters Pras Subramanian · Senior Reporter Thu, June 25, 2026 at 10:41 PM GMT+7 1 min read PSNY VOLV-B.ST 0175.HK Swedish EV maker Polestar (PSNY) said it will no longer sell cars in the US after the Commerce Department banned its sales here.
Polestar, owned by Chinese automaker Geely, said US authorities decided not to "grant Polestar authorization under the current US Connected Vehicle Rule," meaning the company will not be able to market or sell new model-year 2027 vehicles.
The Connected Vehicle Rule targets data security concerns by restricting the use of certain foreign technologies in two areas. The software ban restricts the use of software developed or maintained by Chinese or Russian companies for the 2027 model year. A hardware restriction prohibits the import and sale of vehicle-connected hardware from these countries starting in 2030.