Polestar will go dark in the US market after the 2026 model year, ending sales of its high-end EVs while continuing to support its existing customers. The Sweden-based company—a corporate sibling of Volvo, both brands of the Chinese automotive giant Zhejiang Geely Holding Group—ran afoul of a rule published in the closing days of the Biden administration that generally prohibits Chinese connected-car systems. Polestar revealed its impending exit in a press release that spun the move as a pivot away from the fringe US market, which accounted for only 6% of its retail sales volume in the first quarter of 2026, to meet growing demand in Europe. “The automotive industry is entering a new phase, based on regional dynamics,” says CEO Michael Lohscheller. “Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe.” "Close to 80%" of Polestar's retail sales are from Europe, it says. However, Polestar will continue supporting US drivers of its EVs without specifying for how long. The Commerce Department regulation that Polestar crashed into dates to an investigation the Biden administration launched in February 2024 about potential security risks from Chinese-connected cars. Finalized in January 2025, the Securing the Information and Communications Technology and Services Supply Chain rule banned most sales of “Vehicle Connectivity System (VCS) hardware and covered software designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of” China or Russia. Companies can request a specific authorization, as Polestar did without success. Its press office did not return a request for comment emailed Friday morning. Confusingly enough, Volvo did get that authorization in May, even though Geely bought it back in 2010, and its South Carolina factory produces both Volvo and Polestar vehicles. Volvo’s press