Volvo's EV spinoff Polestar just got banned in the US

Volvo’s EV spinoff Polestar has been blocked from new vehicle sales in the United States starting with the 2027 model year, narrowing EV choices for American buyers. The U.S. Department of Commerce declined to authorize Polestar under the Connected Vehicle Rule, which limits sales of cars with connected-vehicle hardware or software tied to China over security concerns. Polestar said existing Polestar 3 and Polestar 4 crossover SUVs will remain on sale until current inventory is sold out. Company CEO Michael Lohscheller said the move reflects “regional dynamics” and that Polestar will continue investing in markets including Canada, Eastern Europe, Latin America, and Southeast Asia. Polestar added that 94% of its retail sales in the first quarter of 2026 came from Europe.