Polestar will step up its focus on Europe after the United States barred the Geely-controlled electric vehicle maker from selling new models from the 2027 model year under rules targeting connected vehicle technology linked to China.
The Sweden-based company said on Thursday that the US Commerce Department had denied it approval under the Connected Vehicle Rule. The regulation restricts the import and sale of connected vehicles and related technology with ties to China or Russia, citing national security concerns including access to vehicle data and connected systems.
Existing inventories of the Polestar 3 and Polestar 4 will continue to be sold in the US, the company said.
Polestar said Europe would become an even greater priority, with the region already accounting for nearly 80% of its global sales. In the first quarter of 2026, 94% of the Nasdaq-listed company's deliveries came from markets outside the US.
The carmaker, controlled by China's Geely but headquartered in Gothenburg, Sweden, has sought to broaden its presence in Europe as geopolitical tensions and trade restrictions complicate access to the US market.
The decision is the latest step in Washington's efforts to curb Chinese electric vehicles and connected vehicle technology over security concerns. Europe has also taken a tougher stance on Chinese EV imports, with the European Union imposing tariffs on China-made battery electric vehicles.
