US denies Polestar authorization to sell vehicles in latest strike against China-made EVs

Electric-vehicle maker Polestar said on Thursday that the U.S. did not grant it authorization to sell vehicles in the country from model year 2027 onwards, effectively banning it from selling cars in the United States.

The Sweden-based company, which is majority-owned by China's Geely Holding, said it will continue to sell existing Polestar 3 and Polestar 4 stock in the U.S. and will continue to provide access to its service network.

The action marks the latest major move from the U.S. towards banning cars manufactured and exported from China, as the Trump administration pushes to strengthen the domestic carmaking industry.

"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," Polestar CEO Michael Lohscheller said.

Polestar has focused its attention on catering to growing demand in European markets while sales in the U.S. remain sluggish due to growing competitive pressures and slower consumer spending.

Around 94% of Polestar's sales volume in the first quarter of this year came from markets outside the U.S., it said.

The decision raises questions about the future of the Polestar 3, which is the only model manufactured in the U.S.

Amid tariff pressures, the company has opted to roll out refreshed versions of aging models rather than launching all-new ones. It expects deliveries of a new Polestar 4 variant to begin later this year, followed by a refreshed version of the sedan Polestar 2 in 2027.

The automaker's next fully new model comes in the form of the compact Polestar 7 SUV thereafter.