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EV Maker Polestar To Leave U.S. Auto Market In 2027 Over Foreign Parts Rule

Swedish automaker Polestar will leave the U.S. auto market in 2027 in light of a Trump administration rule pertaining to car companies utilizing parts and or software from certain nations. That rule prevents the company from selling news cars in the country, according to a report from Motor Trend.

According to the auto magazine, 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), a U.S. national security policy that bars companies from selling cars that feature hardware/software that is tied to countries such as China or Russia. Polestar is primarily owned by Chinese conglomerate Geely, while Volvo Cars (which is also owned by Geely) retains a strategic ownership stake of roughly 18%, and the remaining shares are publicly traded on the Nasdaq (PSNY).

Polestar sold approximately 5,747 new vehicles in the U.S. in 2025, dropping about 26.8% from 2024.

The company will reportedly continue to sell its remaining U.S. inventory and will provide Polestar 4 in the U.S. while maintaining customer support and access to its service network.

The company will reportedly shift its focus to the European market.