Polestar barred from future US sales under Chinese tech rules
The rules are designed to block connected vehicles with Chinese software, hardware or ownership ties on national security grounds
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POLESTAR Automotive Holding UK has been denied authorisation to sell future models in the US from next year under connected-vehicle rules aimed at limiting Chinese technology.
Polestar, which is backed by Zhejiang Geely Holding Group, said in a statement it will continue selling existing inventory of its Polestar 3 and Polestar 4 electric vehicles and servicing existing customers.
The US policy would accelerate its pivot toward Europe while it prepares to manufacture future models in the region, the Swedish company added. Polestar American depositary receipts closed down about 6 per cent on Thursday following the statement.
The rules introduced by the Biden administration are designed to block connected vehicles with Chinese software, hardware or ownership ties on national security grounds. Chinese cars also face punitive tariffs, including a 100 per cent import tax on EVs.
The decision on Polestar comes after Volvo Car AB last month secured US authorisation to continue importing and selling connected vehicles despite also being effectively controlled by Geely founder Li Shufu.
Europe accounts for nearly 80 per cent of Polestar’s sales, while 94 per cent of first-quarter deliveries came from markets outside the US, the company said.
“We will continue to invest in markets where we have opportunities to grow,” said Polestar chief executive officer Michael Lohscheller.
Geely Holding backed Polestar’s management, according to an emailed statement.
“While specific market access challenges may arise, ZGH is fully confident in our portfolio companies’ board and management as they explore all available avenues to serve their customers around the world,” Geely said.
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Polestar 3s for the US market are assembled at Volvo’s plant in Charleston, South Carolina. A Volvo spokesperson said it was too early to speculate on any impact, adding that previously announced investments at the Charleston plant remain unchanged. BLOOMBERG
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