Polestar owners left ‘holding the bag’ after EV brand pulls out of the US

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Polestar owners left ‘holding the bag’ after EV brand pulls out of the US

The Verge · 1 month ago

Polestar has announced it will stop selling its electric vehicles in the United States from the 2027 model year, leaving thousands of existing owners and dozens of dealers uncertain about servicing, software updates, warranties and resale values. The withdrawal follows the federal government's refusal to authorise continued sales under a rule banning vehicles with connected-vehicle software from "countries of concern"; Polestar is headquartered in Sweden but is majority owned by China's Geely. The situation matters because it is largely unprecedented — the brand is leaving not through bankruptcy or poor sales, but because a regulation has effectively forced it out.

Owners such as DL Byron, who bought a certified pre-owned Polestar 2 just before the announcement, complain of sudden losses in value with no compensation, especially galling given that sister brand Volvo — also Geely-owned — has kept its Commerce Department authorisation. Dealers face ongoing legal obligations, including honouring battery warranties (eight years in New Jersey, ten years or 150,000 miles in California) and managing lease returns, even after new sales cease. Polestar says existing owners and lease customers will retain the same service and that all warranties will be honoured, noting that 94 per cent of its early-2026 retail sales came from outside the US, though some dealers dispute that figure; dealer Matthew Haiken intends to stay open and expects discounts of up to $25,000 on the Polestar 3 and 4 to boost sales.

  • Polestar is quitting the US market from the 2027 model year.
  • A US ban on Chinese connected-car software forced the exit.
  • Owners fear lost value; dealers must still honour warranties.

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