India, June 25 -- Polestar is pulling out of the U.S. vehicle market starting with the 2027 model year after the Commerce Department turned down its request under the Connected Vehicle Rule. Following this news, Polestar's shares dropped over 6% on Thursday.
This rule, which has been in place since January 2025 and was upheld by the previous administration, limits the import and sale of cars that have connected technologies from China.
It affects features like Bluetooth, Wi-Fi, cellular connectivity, and certain satellite communication systems, all due to security worries about data collection.
Polestar, which is mainly owned by Geely Holding, stated that it will continue to support its existing customers in the U.S., including those wit...