Swedish electric vehicle maker Polestar said US regulators denied it authorisation to sell 2027 model-year vehicles under connected-vehicle rules aimed at limiting Chinese technology links.

Polestar, which is backed by Zhejiang Geely Holding Group, said it will continue selling existing US inventory of the Polestar 3 and Polestar 4, and keep servicing current customers.

The company said the policy would speed up its shift to Europe, which accounted for nearly 80% of Polestar’s sales.

It added that 94% of first-quarter vehicle deliveries came from markets outside the US.

Polestar’s US-listed American depositary receipts fell about 6% on June 25 after the announcement.

The decision contrasts with Volvo Car AB, the Sweden-based automaker majority-owned by Geely founder Li Shufu, which secured US authorisation last month.

Polestar 3 vehicles for the US market are assembled at Volvo’s plant in Charleston, South Carolina.

🔗 Source: Bloomberg