Polestar said U.S. regulators did not authorize the company to sell model year 2027 vehicles in the United States, dealing a major blow to the Sweden-based electric-vehicle maker majority-owned by China’s Geely Holding.
By yourNEWS Media Newsroom
Polestar said Thursday that the United States has denied the electric-vehicle maker authorization to sell vehicles in the country beginning with model year 2027, effectively cutting off future U.S. sales as Washington increases pressure on China-linked automakers.
Shares of Polestar fell more than 6.2% in premarket trading after the announcement.
The Sweden-based company, majority-owned by China’s Geely Holding, said it will continue selling existing U.S. inventory of the Polestar 3 and Polestar 4. Polestar also said customers will continue to have access to its service network.
The decision marks the latest major U.S. action targeting vehicles manufactured in or exported from China as the Trump administration works to strengthen domestic auto production and reduce reliance on Chinese-linked carmakers.
Polestar CEO Michael Lohscheller said the company is adjusting its strategy around regional markets as the auto industry changes.
“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,” Lohscheller said.
Polestar has increasingly focused on Europe, where demand has been stronger than in the United States. The company has faced sluggish U.S. sales because of competitive pressure, tariff uncertainty and slower consumer spending.
The company said about 94% of its sales volume in the first quarter came from markets outside the United States.
The U.S. decision raises questions about the future of the Polestar 3, the company’s only model manufactured in the United States.
Polestar has been managing tariff pressure by refreshing existing vehicles rather than rolling out entirely new models. The company expects deliveries of a new Polestar 4 variant to begin later this year. A refreshed version of the Polestar 2 sedan is expected in 2027.
The automaker’s next fully new model is expected to be the Polestar 7, a compact SUV that will be manufactured in Europe.
The U.S. denial leaves Polestar positioned to rely more heavily on international markets while the Trump administration continues pursuing policies aimed at limiting China-linked electric vehicles in the American market.
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