US denies Polestar authorization to sell vehicles, citing China manufacturing

This action represents a significant move by the U.S. to restrict cars manufactured and exported from China, aligning with efforts to bolster the domestic automotive industry. Polestar CEO Michael Lohscheller indicated that the company's strategy is adapting to regional dynamics, with Europe identified as its primary growth engine and plans to manufacture the Polestar 7 in Europe.

Polestar has been focusing on European markets, where demand is growing, while U.S. sales have been sluggish due to competitive pressures and slower consumer spending. In the first quarter of this year, approximately 94% of Polestar's sales volume came from markets outside the U.S. The decision also casts uncertainty on the future of the Polestar 3, which is currently manufactured in the U.S.

Amid tariff pressures, Polestar has prioritized refreshing existing models over launching new ones. The company expects deliveries of a new Polestar 4 variant later this year, followed by a refreshed Polestar 2 sedan in 2027. The next entirely new model planned is the compact Polestar 7 SUV.