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StocksMedium•25 June 2026•

1 min read

U.S. Denies Polestar Authorization to Sell EVs Starting 2027

Key Facts

1Polestar announced that the U.S. did not grant authorization to sell vehicles from model year 2027, effectively banning its cars in the country.

As the U.S.-China trade war intensifies, the U.S. decision to block Polestar is a direct blow to the electric-vehicle sector. Polestar announced that the U.S. did not grant authorization to sell vehicles from model year 2027, effectively banning its cars in the country, according to Reuters. The decision halts the company's expansion plans in the American market.

Polestar, majority-owned by China's Geely and Sweden's Volvo, relies on the U.S. as a key market. The ban is part of broader U.S. efforts to restrict Chinese-made EVs, including steep tariffs previously imposed. This move reflects escalating trade tensions between the world's two largest economies.

Polestar shares are expected to face selling pressure as investors reassess growth prospects following the loss of U.S. market access. The company may accelerate production in Europe or other markets to offset potential losses. Traders await any official statements on alternative strategies and upcoming quarterly results, which may include revised guidance.