Polestar said the United States will not authorize sales of model year 2027 and later vehicles, effectively barring the brand from the U.S. market as part of a broader crackdown on Chinese-made cars. The news sparked a more than 6% drop in Polestar shares and comes as the company continues to service existing U.S. stock and maintain its network. Management signaled a strategic shift toward Europe, with plans to manufacture the Polestar 7 there and to rely on Europe as its growth engine while U.S. demand remains soft. The company noted that roughly all of its early-2026 sales came from outside the United States, underscoring a pivot to international markets in response to tariff and competitive pressures.
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Polestar announced that the U.S. did not grant authorization to sell vehicles from model year 2027 onward, effectively blocking new U.S. sales and signaling tighter regulatory action against Chinese-made cars.
Shares fell more than 6% in premarket trading, reflecting investor concern about the immediate impact on revenue and market access.
Existing Polestar 3 and Polestar 4 inventory will continue to be sold in the U.S., and the company will maintain its service network for current customers there.
CEO Michael Lohscheller framed the shift as part of a broader regional strategy, noting Europe as the primary growth engine and plans to manufacture the Polestar 7 in Europe.
Polestar described a disappointing U.S. performance relative to other regions, with about 94% of Q1 sales coming from outside the U.S., highlighting the strategic push toward international markets.
The decision unfolds amid tariff pressures and a U.S. push to strengthen domestic carmaking, reinforcing a move away from launching all-new models in the current environment.
Upcoming product cadence includes a refreshed Polestar 4 variant later this year, a refreshed Polestar 2 in 2027, and the introduction of the compact Polestar 7 SUV thereafter.