Image Credit: PolestarAt the start of 2027, Polestar will be banned from selling new cars in the United States. This is due to new rules restricting the sale and import of any vehicle connected with ties to Russia and China. Polestar, Volvo's electric division, is of course owned by the Chinese Geely Holding Group.It means that the Polestar 3 and 4 will no longer be available for purchase in America from 2027 onwards. Yet Volvo has a pass to still sell vehicles in America, and because of that, Polestar expected the same. As it stands, it is not looking to appeal the decision.As you can imagine, the electric division of Volvo is not happy. In fact, it is so unhappy that it wants to find out exactly why it was deemed not eligible to sell cars in America, despite Volvo itself being part of the Geely umbrella.AdvertisementAdvertisementDocuments that have been obtained by The Wall Street Journal suggest that Polestar fully expected to get approval so it could keep selling its EVs to American customers. As it has been so caught off guard, it is now seeking clarification as to what went wrong.What Do the Wall Street Journal Documents Say?Image Credit: PolestarAccording to the documents, Polestar was fully expecting U.S. market approval. But it was caught off guard, especially as it had spent more than a year working with the U.S. Department of Commerce to agree to a deal so it could keep selling EVs in America. It first submitted its application to the Commerce Department's Bureau of Industry and Security in May 2025.It was seeking permission to keep selling connected vehicles in the U.S. It took more than a year for the application to be reviewed, and it was during that time that Polestar answered detailed questions from federal officials, giving as much information as it possibly could. It even offered extra measures to address the government's security concerns, given the affiliation with China.This included cybersecurity reviews, audits, and changes that would prevent any Chinese-linked organisation from managing the data from its EVs. Volvo received its approval to keep selling vehicles in May 2026. Polestar, expecting the same, was stunned to have its request denied in June 2026, despite the year-long review process and having presented as much evidence as possible that it should be allowed to keep selling its cars in America.Why Was Polestar Denied Approval?Image Credit: PolestarThe dispute allegedly centers around the US government's Connected Vehicle Rule. This is the rule forbidding the sale of certain vehicles with connections to China and Russia, with much of the fear coming from security concerns. Even building the cars in America wasn't enough, as the Polestar 3 is actually built in South Carolina. The Chinese ownership still counted against it. Volvo has many of the same connections as Polestar, but it had a positive outcome in its review. The EV division thus wants answers as to why it was singled out when the parent company wasn't.AdvertisementAdvertisementDon't expect things to change, however. As of the time of writing, Polestar will still leave the American market at the end of the 2026 model year. Dealers will be allowed to sell whatever inventory they have left, but after that, there will be no new Polestar EVs for America. Existing owners, however, will still be supported by warranties, repairs, parts, and updates to the EV software. The company will now focus on other markets, with Europe where it will focus most of its attention.If you want more stories like this, follow Guessing Headlights on Yahoo so you don't miss what's coming next.
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