Polestar to be banned from US market under Connected Vehicle Rule

Electric vehicle (EV) manufacturer Polestar is to exit the US market after the US Department of Commerce said it would not grant the majority-Chinese-owned, Sweden-based company authorisation to sell its vehicles in the country. Only 6% of its retail sales came from the US in Q1 2026, the company has said. The company is majority-owned by Geely, and had previously indicated that the Connected Vehicle Rule, proposed under the Biden administration to restrict import of vehicles using Chinese software and hardware, would largely prevent it from selling in the US. Since being passed, the rule has been upheld by the Trump administration, and the fresh decision to withhold authorisation reflects sustained US efforts across party lines to limit sales of Chinese EVs in the market.