Even though it makes an electric SUV in the US, Polestar will effectively be shut out of the local market next year. The US Department of Commerce’s Bureau of Industry and Security will not permit the brand to sell new models in the country beginning in 2027, according to Carscoops.

The agency’s decision falls under the Connected Vehicle Rule, which prohibits selling cars with software or hardware from China or Russia due to national security concerns. Unless manufacturers acquire authorization to sell stateside, the software block begins in 2027 and hardware will no longer be allowed as of 2030. Polestar is majority-owned by China-based brand Geely and it has not been granted that clearance.

It’s a tough break, particularly since the company moved production of its Polestar 3 model to South Carolina in 2024 to avoid tariffs on EVs imported from China. Those EVs began delivery in the US in the same year. It’s unclear whether Polestar will continue production in the US or move elsewhere in response to the regulatory change. Interestingly, sister brand Volvo has the same owner and did receive authorization for US sales.