Electric Shock: Polestar to Exit U.S. Market by 2027!
Polestar is exiting the U.S. market from the 2027 model year due to the U.S. government's Connected Vehicle Rule, which impacts companies with Chinese ties like Polestar's owner, Geely. The EV maker will now focus its strategy on Europe, where it plans to expand its network and localize production, while still supporting existing U.S. customers.
Polestar, the Swedish performance EV maker, is set to exit the U.S. market beginning with the 2027 model year, shifting its strategic focus entirely toward Europe. This decision comes after the U.S. Department of Commerce's Bureau of Industry and Security declined to grant the company an exemption under the Connected Vehicle Rule (CVR). The CVR is a U.S. national security policy that prohibits companies from selling vehicles featuring hardware or software tied to countries such as China or Russia, a regulation that impacts Polestar due to its ownership by the Chinese conglomerate Geely.
Despite the impending market exit for new models, Polestar has confirmed its commitment to current U.S. customers. The company will continue selling its existing inventory of the Polestar 3 and Polestar 4 in the U.S., while also maintaining full customer support and access to its service network. All existing warranties will remain valid and honored according to their terms and conditions. However, it was confirmed that no future Polestar vehicles, including the anticipated Polestar 5 grand tourer, will be sold in the U.S.
This strategic realignment reinforces Polestar’s commitment to the European market, which already accounts for nearly 80 percent of its retail sales volume. In the first quarter of 2026, an overwhelming 94 percent of Polestar's global retail sales originated from markets outside the U.S. As part of this renewed European strategy, Polestar plans to significantly expand its retail network across Europe and localize the production of future models. This includes the upcoming Polestar 7 compact SUV, which was teased in July 2025 as a 2028 model year vehicle and will be built in Europe.