Polestar will cease new car sales in the United States due to the Connected Vehicle Rule taking effect in June 2026. The Chinese-owned electric vehicle brand expects the move to accelerate development and streamline production for other markets, including Australia.
The U.S. government blocked Polestar under the Connected Vehicle Rule in June 2026. The regulation prohibits sales of vehicles equipped with software controlled by China or Russia, targeting manufacturers owned or influenced by those countries.
Australia stands to gain from reduced complexity
Polestar Australia confirmed the U.S. ban won’t disrupt local operations. Scott Maynard, the brand’s Australian general manager, stated the decision might help markets outside America.
“Polestar made it clear that 94 per cent of its sales come from outside the U.S., so the American market was a small part of its global business,” Maynard said at the local launch of the updated Polestar 3. “The U.S. has many unique design requirements that differ from Europe and other regions. Removing those constraints will let the company develop new cars faster.”
He explained that the brand will now concentrate on Europe and expanding markets in the Asia-Pacific region, such as Australia. The change should lead to quicker updates and fewer regulatory obstacles for models sold elsewhere.
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Polestar’s global headquarters remain in Sweden. Though owned by Chinese automaker Geely, it has shifted production and development to other countries. In March 2026, the company announced it would produce the Polestar 3 SUV at Volvo’s South Carolina plant for markets outside China. The Polestar 4 is imported from South Korea.
When asked if the U.S. ban would alter those plans, Maynard said Polestar’s strategy stayed the same. “The South Carolina facility is owned and operated by Volvo, and we have that partnership in place. No changes have been announced,” he said.
No plans to exit the U.S. entirely
Polestar will keep a presence in the U.S. to support current customers. It will continue selling remaining inventory, used cars, and parts while fulfilling service commitments. “For now, everything remains unchanged,” Maynard said.
In the first half of 2026, the brand delivered 30,423 vehicles worldwide, with 1,861 going to American buyers. Australia, though a smaller market, received 1,202 vehicles—nearly two-thirds of the U.S. total. Sales in Australia have risen 2.5% so far this year.
Polestar operates in 30 markets and recently added Estonia, Latvia, and Lithuania. Its ability to shift focus without major disruption shows a strategy of spreading production and sales across regions.
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