Polestar claims US sales ban blindsided company after believing approval was imminent

US Sales Ban and Polestar's Reaction

Polestar claims the Trump administration rejected its request to continue selling electric vehicles in the US under a rule prohibiting vehicles with connected software from China. The company stated it was blindsided by the decision, having been led to believe approval was forthcoming.

Discrepancy with Volvo's Approval

In an August 18th letter to dealers, Polestar indicated it lacked a clear reason for the denial, especially since its sister company, Volvo, received authorization to sell vehicles despite similar corporate ownership by Geely, a Chinese entity. The US Department of Commerce approved Volvo in May 2026, but rejected Polestar's similar request one month later.

Timeline of Communications

Polestar's head of product, Peter Wexler, detailed the company's communications with the Trump administration, beginning with an application to the Bureau of Industry and Security (BIS) on May 29, 2025. Wexler stated that subsequent meetings gave Polestar the impression that approval was likely, given the functional similarities between Polestar and Volvo vehicles.

Expectations of Approval

Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, reportedly told Polestar representatives that approval would be reasonable if Volvo Cars was approved under effectively the same shareholding, ownership structure, and with identical hardware and software in the Polestar 3 as the Volvo EX90. Polestar had also expressed openness to mitigation measures to comply with the ban on Chinese software.

Impact on Polestar's US Market

Following the rejection, Polestar announced it would cease selling its vehicles in the US starting with the 2027 model year. The rule, which originated under the Biden administration, bans the import and sale of vehicles with connected software from countries deemed hostile, including China.