A New Jersey dealer sued Polestar, alleging the Chinese-owned automaker ``orchestrated'' its U.S. exit as cover to abandon the market. Prestige Imports of East Hanover, N. J., owned by Matthew Haiken, seeks at least $25 million in damages after Polestar terminated its franchise agreement under state law.

The lawsuit, filed in New Jersey state court, follows Polestar’s June announcement to cease U.S. sales starting with the 2027 model year. The automaker cited a denied Commerce Department waiver tied to a new ``Connected Vehicles” rule blocking foreign tech in vehicles. U.S. authorities enforce the rule to prevent China and Russia from using vehicle data transmission and cameras for espionage. Polestar, a Sweden-based electric vehicle manufacturer, exited the U.S. market after failing to secure the waiver, which the dealership claims violates its contractual rights.