Polestar is out of the US market, blocked by a federal rule targeting vehicles with Chinese software.
The Department of Commerce's Bureau of Industry and Security denied Polestar's request for an authorization exemption under the Connected Vehicle Rule — a regulation passed under the Biden administration that bars import and sale of vehicles containing software from countries of concern, China chief among them. Without that exemption, Polestar cannot sell model year 2027 vehicles or anything after in the United States. The Swedish-branded company announced the retreat in a press release.
The ruling matters because Polestar is not a fringe player — it is a joint venture with roots in Volvo and Geely, the Chinese automaker that owns both. That ownership structure is exactly what the Connected Vehicle Rule was designed to catch. The decision signals that the rule has real teeth, and that brand nationality is no shield when the supply chain and software stack run through Beijing.
Other EV makers with Chinese ties should read this as a warning shot. Polestar styled itself as a European premium brand, but that framing did not survive regulatory scrutiny — which is a useful reminder that marketing and policy operate on different definitions of "where a car comes from."