Jun. 26 at 2:12 AM
$PSNY Polestar will exit the US market after the US Commerce Dept officially denied the automaker authorization to sell vehicles under its strict Connected Vehicles Rule
Polestar is majority-owned by Chinese automotive giant Geely Holding Group & headquartered in Sweden
The decision makes the majority-Chinese-owned, Swedish-headquartered brand the 1st major casualty of a federal policy aiming to block internet-connected car tech linked to China & Russia due to data security & national security concern. The sales ban applies to all new vehicles starting with the 2027 model year
Under the Connected Vehicles Rule, vehicles w/ wireless tech (Bluetooth, Wi-Fi, cellular, satellite) developed or maintained by companies subject to the jurisdiction of China or Russia are prohibited
Note: None of Polestar's vehicles currently sold in the US are built in China. The Polestar 3 is produced in South Carolina, & the Polestar 4 is made in South Korea
Geely-owned sister brand Volvo Cars successfully secured an authorization waiver to continue US sales after proving independent governance and data isolation. Polestar’s separate petition was flatly denied
In 1Q26, the US accted for only 6% of Polestar’s retail volume
Caution: Newly proposed federal bill called the Protecting America from Chinese Cars Act will empower US CBP to deny border entry to anyone driving a China-connected vehicle
$F is aggressively petitioning the Commerce Dept for a special license regarding its popular Lincoln Nautilus
$GM moving all Buick Envision manufacturing to a plant in Kansas to completely escape the ban
The crackdown reaches beyond car brands. The Pirelli tire manufacturer had a product line risk a federal ban due to a major China shareholder. The Italian govt had to intervene to strip that shareholder of board control so Pirelli could secure US clearance & move production to the US
Lawmakers have labeled these foreign-market cars as "surveillance packages on wheels," raising flags about their ability to map US military bases, capture video, & track critical infrastructure
