Electric vehicle manufacturer Polestar announced Thursday that the United States has refused to grant it permission to sell vehicles in the country beginning with model year 2027, essentially locking the automaker out of the American market going forward.
The company, headquartered in Sweden and majority-owned by China’s Geely Holding, said it plans to continue selling its remaining Polestar 3 and Polestar 4 inventory already in the U.S. and will keep its service network available to existing customers.
This decision represents the latest step in a broader effort by the Trump administration to restrict vehicles manufactured in China from entering the American market, as part of a push to boost domestic auto production.
Polestar CEO Michael Lohscheller addressed the company’s direction in light of the development. “The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe,” he said.
The company has been shifting its focus toward European markets, where demand has been growing, while U.S. sales have struggled amid increased competition and softer consumer spending.
Polestar reported that roughly 94% of its total sales volume in the first quarter of this year came from markets outside the United States.
The authorization denial also raises uncertainty about the future of the Polestar 3, which is the only Polestar model currently built in the U.S.
Facing pressure from tariffs, Polestar has chosen to update existing models rather than introduce entirely new vehicles. The company expects to begin delivering a refreshed version of the Polestar 4 later this year, with an updated Polestar 2 sedan planned for 2027. Its next completely new model will be the compact Polestar 7 SUV, set to follow those updates.
