India, June 25 -- Electric vehicle maker Polestar said it will stop selling cars in the United States starting with its 2027 model year vehicles, because the Trump administration is forcing the company out of the market. After the announcement, Polestar's shares fell 5.7% in early trading. The problem is linked to a U.S. regulation called the Connected Vehicles Rule.

The U.S. Department of Commerce did not give Polestar permission to keep selling vehicles under this rule. The rule bans the import and sale of vehicles that use connected-vehicle technology linked to China, starting with the 2027 model year. Technologies covered under the rule include Bluetooth, Wi-Fi, cellular connectivity and some satellite communication systems.

U.S. of...