Polestar’s departure from the United States now appears all but final. The Swedish electric-vehicle company has decided not to challenge the federal government’s decision barring it from selling future models in this country, leaving its American dealers to determine what happens to their investments, remaining inventory and franchise agreements. The Wall Street Journal reports Polestar will not ask the U.S. Department of Commerce to reconsider its decision and will not take the dispute to court. Either route could have prolonged the company’s fight to remain in the American market, but Polestar has instead chosen to concentrate its resources elsewhere. Commerce Department’s Bureau of Industry and Security denied Polestar the specific authorization it needed to continue selling new vehicles beginning with the 2027 model year. The decision was made under the federal Connected Vehicle Rule, which restricts vehicles and connected-vehicle technology linked to China or Russia because of national-security and data-privacy concerns. The rule, issued in January 2025 and effective beginning March 17, 2025, prohibits 2027 model-year connected vehicles from being sold by manufacturers owned or controlled by China or Russia. It also applies to vehicles using certain covered software from those countries. Additional restrictions on connected-vehicle hardware are scheduled to take effect with the 2030 model year. Polestar is based in Sweden but is majority-owned by China’s Geely Holding. That ownership connection proved to be the central obstacle, even though the Polestar 3 is assembled at Volvo’s factory in South Carolina. In other words, moving final assembly to the United States was not enough to escape a rule that examines ownership, control, software and connected technology—not simply where the vehicle rolls off the assembly line. This is especially notable because Volvo Cars, which is also controlled by Geely and helped establish Polestar, received federal authorization in May to continue selling