US Department of Commerce denies Polestar authorisation under Connected Vehicle Rule, threatening US sales from 2027 The US Department of Commerce has denied Polestar authorisation to sell vehicles in the US from 2027 under the Connected Vehicle Rule, which is designed to target the import and sale of vehicles featuring technology linked to China or Russia. As a result, Polestar has announced it will increase its focus on the European market. Polestar will not be authorised to sell vehicles in the US from model year 2027 under the Connected Vehicles Rule Polestar The Connected Vehicle Rule, finalised by the US Department of Commerce’s Bureau of Industry and Security (BIS) in January 2025, aimed to address concerns that internet-connected cars could collect sensitive data and potentially be remotely accessed through technologies such as cellular modules, Wi-Fi, Bluetooth, cameras, sensors and automated driving software. It applies to any automaker that is owned, controlled by, or subject to the direction of entities from China or Russia. Each of these companies is required to obtain authorisation from the Department of Commerce to continue selling connected vehicles in the US, with investigations conducted on a case-by-case basis. The BIS recently refused to grant Polestar authorisation to sell vehicles in the US from model year 2027 onwards. As a result, Polestar is expected to be unable to sell new vehicles in the US from this date under the current regulatory framework. The company has said it will continue to sell existing inventory and support existing customers, although the longer-term future of its US operations remains unclear. Polestar's response Following the BIS' decision, Polestar issued a statement saying that the company intends to increase its strategic focus on Europe by continuing to expand its sales network and preparing to localise the manufacturing of future models. Polestar noted