The US Commerce Department barred Polestar from new EV sales next year after denying connected‑vehicle authorization. CEO Michael Lohscheller said the move signals the end of globalisation for automakers. Polestar, majority owned by Geely, had already seen a 28% drop in U.S. sales to 1,861 units in H1, while Europe accounts for 80% of its 30,423‑unit volume.

Polestar will liquidate remaining stock of its Polestar 3 and Polestar 4 models, slashing prices to clear inventory. The company shifted Polestar 3 production from China to Volvo’s South Carolina plant, while Polestar 4 remains in South Korea. Dealers in New Jersey and across the U.S. report unprecedented uncertainty after the ban.

By contrast, Volvo Cars—also owned by Geely—received approval after showing that its connected‑vehicle data stays within U.S. borders. The split outcome highlights the heightened scrutiny Chinese‑backed brands face under U.S. trade rules, prompting a re‑evaluation of supply chains and data governance.

For investors, the ban forces Polestar to pivot toward growth markets such as South Korea, Australia, and Europe, while shareholders must weigh the risk of a shrinking U.S. presence. Business leaders will need to accelerate regionalisation, tighten data compliance, and reassess the cost of staying competitive in a market that increasingly penalises foreign technology.