Polestar Exits the U.S. Due to Connected-Car RuleMichael Simari - Car and DriverThe Polestar brand is leaving the American market because of the Connect-Car Rule that bans foreign-made cars with certain connected software and hardware.So far, Polestar has been selling much better in Europe, so the Volvo spin-off will focus more resources there.The automaker's 32 dealers will remain open to provide service and sell down the existing inventory of the Polestar 3 and Polestar 4.Polestar has been banned from selling new vehicles in the United States, starting with the 2027 model year, after it was denied the right to do so by the U.S. Department of Commerce's Bureau of Industry and Security. The issue involves a rule that focuses on certain foreign vehicles that use connected software and hardware that are not allowed to be sold in the U.S. unless authorized. The two major countries that are barred are China and Russia, though, obviously, this won't affect your local Lada dealership because it doesn't exist.For manufacturers building cars in China, the Connected Vehicle Rule is a much bigger problem, and the first casualty appears to be Polestar. As of today, the company announced that it's pivoting from selling cars in America and will instead focus on the European market. Any existing inventory stock will be wound down, but there will be no new Polestars will be sold on our shores after that.Marc Urbano - Car and DriverThe news comes not long after Polestar admitted its original business plan wasn't quite working earlier this year, with the announcement of a new roadmap in February. Despite respectable sales, profitability wasn't there, and tweaks included a second-generation replacement for the Polestar 2, previously unplanned.AdvertisementAdvertisementNow, anyone wondering when the handsome Polestar 5 sedan or 6 roadster were going to arrive in the U.S. has an answer: never. Or at least not in this decade, unless there's a major legislative change. Polestar is headquartered in Sweden, but its parent company is Chinese manufacturing giant Geely, and the cars are built in that country. Meanwhile, Volvo—Polestar's progenitor and another Geely subsidiary—was recently granted authorization by the U.S. government to continue selling cars within its borders.Polestar's representatives noted that the vast bulk of sales thus far had occurred outside the U.S., and that it was planning on focusing resources particularly in Europe. Michael Lohscheller, CEO of Polestar, said, "The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine, and our plan to manufacture Polestar 7 in Europe."Interestingly, Polestar isn't out of North America entirely and will still continue to sell cars in Canada. That market is much smaller than the U.S., but it does provide a test market to continue to evaluate how best to serve North America as a whole, if the brand returns to the U.S. at some point in the future.Michael Simari - Car and DriverFor now, the 32 U.S.-based Polestar dealers will continue to offer aftersales support for the cars, providing service options. A spokesperson shared the following statement with Car and Driver: "Supporting our customers remains our highest priority. Existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today. All existing warranties remain in effect and will continue to be honored in accordance with their terms and conditions."AdvertisementAdvertisementWith the brand pausing its new car sales entirely, there may be some deals here if you're in the market for an EV. We liked the Polestar 3 and 4 just fine. In the meantime, this exit signals a change for the market and will likely be something other manufacturers will carefully examine. After all, if you're looking to plot a course when surrounded by uncertainty, you traditionally look for the polestar.➡️ Skip the lot. Let Car and Driver help you find your next car.Shop New Cars Shop Used CarsYou Might Also LikeGift Guide: Best Ride-On Electric Cars for KidsFuture Cars Worth Waiting For: 2025–2029