Polestar barred from selling new U.S. cars from 2027 under Biden administration rule
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Polestar barred from selling new U.S. cars from 2027 under Biden administration rule
Volkswagen's China EV unit loses 3,200 per car as price war rages
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Polestar, the Swedish electric vehicle brand owned by China’s Geely, will be barred from selling new cars in the United States starting with the 2027 model year under the Biden administration’s Connected Vehicles Rule, according to multiple reports published today. The decision, confirmed by German business daily *Handelsblatt* and Australian regional outlets , follows a regulatory crackdown on Chinese-affiliated EV brands accessing sensitive data through connected services. Polestar, which has sold approximately 100,000 vehicles globally since its 2017 launch, will pivot its commercial strategy toward Europe, where demand for premium electric sedans and SUVs remains robust.
The U.S. Transportation Department’s rule, which takes effect on 1 January 2027, requires all new passenger vehicles to undergo a cybersecurity review if they use cellular connectivity for navigation, infotainment, or over-the-air updates. Polestar’s entire current lineup—including the Polestar 2 sedan and Polestar 3 SUV—relies on cloud-based software supplied by Geely’s ecosystem, which U.S. officials have flagged as a potential national security risk. “We are disappointed by this decision but will continue to serve our U.S. customers with existing inventory and focus on expanding our European footprint,” a Polestar spokesperson said, declining to comment on possible appeals.
The move underscores escalating trade tensions between Washington and Beijing over advanced automotive technology. On the same day, *Financial Times* reported that Chinese automakers are increasingly routing exports to the U.S. through Mexico and Canada to circumvent tariffs, turning North America into a flashpoint for trans-Pacific competition . Meanwhile, Turkey’s domestic EV champion Togg celebrated its eighth anniversary with more than 105,000 users, highlighting a contrasting strategy of import substitution and renewable-energy integration .
Industry analysts warn that Polestar’s exit could accelerate consolidation among premium EV brands, particularly as the global charging infrastructure market is projected to exceed $120 billion by 2033 . For now, Polestar plans to prioritize markets such as Germany, where it already operates a proprietary fast-charging network and has begun rolling out AI-driven software updates. The company’s next-generation Polestar 5, slated for a 2027 European launch, will feature a domestically developed infotainment stack to reduce reliance on Chinese-linked components.
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