The tides can often change very quickly in the automotive world. That’s exactly what has happened with Polestar, which has just been banned from selling its cars in the US market by the country’s Commerce Department. The Swedish company confirmed the news by announcing that it couldn't secure an agreement with the US government to continue sales of its new vehicles in the US. The latest development follows Polestar's announcement of record sales, with 13,126 cars sold, representing 7% year-on-year growth. The Connected Vehicle Rule, finalized in 2025 under the Biden Administration, effectively blocks Polestar from selling cars in the US starting with the 2027 model year. The rule targets connected vehicles with software or vehicle-connectivity hardware linked to China or Russia, and also applies to automakers owned by, controlled by, or subject to the jurisdiction of those countries. As you may know, the Swedish EV brand is majority-owned by Geely – a Chinese auto manufacturer – which puts them on the wrong side of the Connected Vehicle Rules. Cars like the Polestar 2, 4, and the new Polestar 5 are all manufactured in China, which means none of them can be sold in the USA. The rule was motivated by national security concerns. Apparently, cars from countries like China, Russia, and others were deemed to pose a risk to US security. The argument was that tech like cameras and GPS tracking in cars could be exploited by foreign powers. That has prevented companies like WeRide and Pony AI from testing self-driving cars on US roads. The said Rule also prohibits Chinese software in cars sold in the US beginning with the 2027 model year, with a further ban on Chinese hardware from the year 2029 as well. While the move to ban Polestar has raised eyebrows, there’s an even