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Polestar Claims US Misled on EV Sales Ban
25 Aug
Summary
- Polestar alleges the Trump administration misled them for months.
- Volvo was approved to sell EVs despite Chinese ownership, Polestar was not.
- Polestar will cease US sales starting with the 2027 model year.
Polestar has accused the Trump administration of misleading the company for months regarding its ability to sell electric vehicles in the United States. The automaker received a denial from the Department of Commerce, prohibiting its vehicles from the US market due to connected software originating from China.
This decision contrasts with the approval granted to Volvo, Polestar's sister company, which is also majority-owned by China's Geely. Despite offering mitigation measures, Polestar's request was rejected, prompting the company to announce its withdrawal from the US market starting with the 2027 model year.
The rule, initially established under the Biden administration, bans vehicles with connected software from countries deemed hostile, including China. Polestar is still seeking a clear explanation for the denial, especially given the perceived similarity of its vehicles and ownership structure to Volvo's.
A lawsuit has also been filed by a Polestar dealer in New Jersey, accusing the company of orchestrating its own exit from the US market.
