Polestar on Thursday said it would pivot to the European market after the U.S. government banned the sale of its vehicles from model year 2027 onward.
The firm said most of its retail sale volumes originated from markets outside the U.S. during the first quarter of 2026. "We will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada," Polestar CEO Michael Lohscheller said in a statement.
The decision came after the U.S. Department of Commerce decided to not grant Polestar an authorization under the current Connected Vehicle Rule to sell vehicles in the U.S.
The rule restricts the import and sale of cars with connected-vehicle technology linked to China.
Geely Automobile Holdings (HKG:0175) is the majority shareholder of Polestar.