Polestar says US ban on its EVs starts with 2027 model year

Key Facts

In the latest fallout from US-China trade tensions, Polestar — owned by China's Geely — announced that the Trump administration will force it to halt US sales of its electric vehicles starting with the 2027 model year. The move follows connected vehicle rules targeting any vehicle with Chinese-linked components or ownership, affecting the Swedish brand despite its European branding.

The US rules target internet-connected vehicles containing Chinese parts or ties, citing national security concerns. Although Polestar markets itself as a Swedish brand, its ownership by Geely makes it subject to the restrictions. Other automakers with Chinese ownership or close ties may face similar curbs, further complicating the global EV market landscape.

The ban is a major setback for Polestar's US ambitions, but the 2027 phase-in provides some time for negotiation or strategic shifts, such as altering ownership structure or component sourcing. Investors will watch for the new administration's stance, potential legal challenges, and any moves by Polestar to relocate production outside China.