Polestar Clearing U.S. Inventory Ahead of 2027 Ban

Polestar is preparing to stop selling new cars in the United States after the 2026 model year and is close to selling out its remaining 2026 inventory as it runs an aggressive clearance campaign.

Polestar will be prohibited from selling new cars in the U.S. from the 2027 model year onward.

Regulatory ban and exemption differences

The U.S. Commerce Department's Connected Vehicle Rule bars new vehicles that integrate hardware and software connected to 'foreign adversaries,' a phrase the department uses to describe certain external technology links cited over data privacy and hacking concerns. Polestar was denied a regulatory exemption because Geely Holding, a Chinese auto group, owns a major stake in the company. By contrast, Volvo—of which Geely owns nearly 80 percent—obtained an exemption after showing its software and data architecture could be decoupled from its Chinese parent.

Inventory clearance, incentives and aftercare

Polestar's third-quarter U.S. sales more than doubled, reaching 2,160 units versus 966 units in the same period of 2026, a surge driven primarily by efforts to move remaining 2026 stock. Those figures remain well below the automaker's peak U.S. volume in 2024, when it sold 13,079 units. The company says it will continue to support existing owners in the United States with a permanent service network, warranty support and a pre-owned remarketing business even after new-car sales end.

To clear remaining 2026 models, dealers are prioritising sales of the Polestar 3 mid-size crossover and the Polestar 4 SUV coupe with steep discounts. Polestar has announced incentives described as among the largest for luxury electric vehicles in the U.S., with price reductions of up to 40 percent. Specifically, the Polestar 4 received a $25,000 discount that cuts the single-motor rear-wheel-drive model from $57,800 to $32,800. The Polestar 3 saw $23,000 to $25,000 cuts, bringing an entry-level model from $68,900 down to $44,500.

Buyers can also stack additional bonuses: a $4,000 Loyalty Bonus for current or former Polestar owners and household members toward a new Polestar 4, and a $2,000 Conquest Bonus for customers trading in or currently owning a competing EV, hybrid or gasoline-powered vehicle.

To offset the loss of the American new-car market, Polestar's newly appointed CEO Michael Lohscheller is reallocating resources toward Europe. Reuters reports the company plans to build its upcoming compact SUV, the Polestar 7, at the Volvo plant in Slovakia. Customer deliveries of the Polestar 5 luxury sedan have already begun, and Polestar 4 production is attempting to keep pace with demand in Germany, Scandinavian markets and the United Kingdom.