U.S. regulators have declined to authorize Polestar to sell vehicles in the United States beginning with model year 2027, the company said on Thursday, a decision that effectively blocks new Polestar vehicle sales in the U.S. from that model year onward.
Polestar, which is Sweden-based and majority-owned by China’s Geely Holding, said it will continue to offer for sale remaining inventory of the Polestar 3 and Polestar 4 in the U.S. market and will keep providing access to its U.S. service network.
The announcement is the latest significant U.S. action aimed at limiting cars manufactured and exported from China, occurring as the Trump administration pursues policies to bolster domestic vehicle production.
Polestar’s chief executive Michael Lohscheller characterized the industry shift as a move into a new regional phase. "Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe," he said, pointing to a reorientation of production and sales focus.
The company has already been concentrating on expanding sales across European markets, a strategy influenced by relatively weak demand in the United States amid increasing competition and subdued consumer spending. Polestar reported that roughly 94% of its sales volume in the first quarter of this year came from markets outside the U.S.
The U.S. decision also raises uncertainty around the Polestar 3, which is presently the only model the company manufactures within the United States.
Facing tariff pressures, Polestar has chosen to introduce refreshed iterations of existing models instead of rolling out a broad slate of brand-new vehicles. The company said it expects deliveries of a new Polestar 4 variant to begin later this year, with a refreshed Polestar 2 sedan scheduled for 2027.
Beyond those updates, Polestar plans its next fully new vehicle to be the compact Polestar 7 SUV. The company’s product and production planning will proceed against the backdrop of the U.S. restriction on model-year 2027 sales.