Polestar will be unable to sell new vehicles in the United States from model year 2027 after the U.S. Department of Commerce’s Bureau of Industry and Security declined to grant the company authorization under the current Connected Vehicle Rule. In response, Polestar said it is sharpening its strategic focus on Europe — which accounts for close to 80% of its retail sales volumes — by expanding its sales network and preparing to localize manufacturing of future models. The company will continue to sell existing stock of the Polestar 3 and Polestar 4 in the U.S. and will keep supporting current owners through its service network.
Highlights
- The Bureau of Industry and Security declined to grant Polestar authorization to sell vehicles in the U.S. from model year 2027 onward under the Connected Vehicle Rule.
- Europe represents close to 80% of Polestar’s retail sales volumes, and 94% of first-quarter 2026 volumes originated from markets outside the U.S.
- Existing Polestar 3 and Polestar 4 stock will remain available in the U.S., with continued service-network support for current owners.
- Polestar plans to manufacture the Polestar 7 compact SUV in Europe, with the model due in 2028.
Europe Becomes the Growth Engine
Europe is now the center of Polestar’s strategy. The region already accounts for close to 80% of the brand’s retail sales volumes, and 94% of its first-quarter 2026 volumes came from outside the United States. To build on that base, the company is expanding its European sales network and preparing to localize production of future models, including plans to manufacture the Polestar 7 compact SUV in Europe.
“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. Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada,” said Michael Lohscheller, Polestar CEO.
What the Decision Means for U.S. Customers
The Bureau of Industry and Security’s decision blocks authorization for Polestar to sell vehicles in the U.S. from model year 2027 onward. Existing inventory is unaffected: the company will continue to sell remaining stock of the Polestar 3 and Polestar 4 in the U.S. market and will continue to support customers, including access to its service network.
Model Line-Up and Roadmap
Polestar currently sells four models — the Polestar 2, Polestar 3, Polestar 4, and Polestar 5 — across 31 markets in North America, Europe, and Asia Pacific. The company’s European expansion continues alongside a series of planned launches: a new variant of the Polestar 4 in the last quarter of 2026, a successor to the Polestar 2 early in 2027, and the Polestar 7 compact SUV in 2028, followed by the Polestar 6 roadster.
Lohscheller pointed to the product pipeline as evidence of momentum: “Polestar continues to challenge bigger, more established players thanks to our impressive cars and growing model line-up. Polestar 5 has received incredible feedback from the global media, with customer deliveries set to start during the summer. A new variant of our global bestseller, Polestar 4, is planned for the second half of this year, followed by the all-new Polestar 2 in 2027, and thereafter the Polestar 7 compact SUV.”
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