Polestar is reorienting its strategy in the direction of Europe now that the automaker has put to rest any plans for new vehicle sales in the United States from the 2027 model year on.
Polestar made the announcement after the U.S. Department of Commerce’s Bureau of Industry and Security turned down its application for authorization under the Connected Vehicle Rule. That denial means Polestar will be barred from the U.S. market starting with 2027 models.
It is a considerable blow to Polestar’s American prospects, but the company is undeterred. It will go ahead and move its stock of 2026 Polestar 3 and 4s, and its dealer network will stand ready to service and support present-day owners as usual.
Europe has become the brand’s fastest growing and most important market, so it is where Polestar is putting its focus. In fact, the company puts nearly 80% of its retail sales there these days; 94% of what was sold globally in the first quarter of 2026 came from outside the U.S.
“With Europe as our largest growth engine and our intention to build the Polestar 7 there, our strategy is in line with the regional dynamics of an industry in a new phase,” said Michael Lohscheller, Polestar’s CEO.
To that end, Polestar intends to put down more roots in Europe by localizing production of upcoming models and growing its retail presence. The thinking is that building cars closer to your biggest customer base gives you an edge in a global market that is becoming more regional by the day.
