Polestar is accelerating sales in the United States as the Swedish automaker prepares to stop selling new vehicles in the country starting in 2027 under a U.S. government ban. The company’s latest sales figures show 1% year-over-year growth in the third quarter and across the first nine months of the year, putting it close to selling out its remaining 2026 U.S. inventory, according to CEO Michael Lohscheller.

The upcoming restrictions stem from the U.S. Department of Commerce’s Connected Vehicle Rule, which targets vehicle technologies connected to companies associated with designated foreign adversaries, including China. Because Chinese automaker Geely owns a majority stake in Polestar, the brand is affected by the rule and is working to sell its remaining U.S. vehicles before the restrictions take effect.

Polestar U.S. Sales Grow Ahead of 2027 Restrictions

Polestar’s latest sales bulletin shows that the company sold 14,371 vehicles in the United States during the third quarter. Estimated sales for the first nine months of the year reached 44,790 vehicles, with both figures representing 1% growth compared with the same periods a year earlier.

The sales performance comes as Polestar works to clear its remaining U.S. inventory before the ban begins. Lohscheller told Reuters that the company is approaching a sellout of its entire 2026 U.S. inventory following the latest sales results.

The effort specifically includes the Polestar 3 and Polestar 4 models. Although the company expects to stop selling new vehicles in the U.S. under the restrictions, it plans to continue servicing existing vehicles and maintaining its used-car sales business.

Global Sales Decline as Polestar Shifts Toward Europe

While Polestar has recorded modest growth in the United States, its global retail sales declined 8% over the same period. With the U.S. market facing new restrictions, the automaker plans to shift its focus toward Europe.

One part of that strategy involves developing the Polestar 7, a new compact SUV that the company is keen to build in Slovakia. Polestar is also preparing for deliveries of newer models to European customers as it works to address the current decline in global retail sales.

Lohscheller acknowledged the sales downturn but expressed confidence that deliveries of new models in Europe would help sales rebound. He said the Polestar 5 and Polestar 4 have begun arriving at European ports and will soon be transferred to retailers.

The CEO also pointed to growing demand for Polestar vehicles in the United Kingdom, Germany and Scandinavia, markets that are becoming increasingly important to the company’s plans as its U.S. sales opportunities narrow.

Why the U.S. Connected Vehicle Rule Affects Polestar

The U.S. Department of Commerce finalized the Connected Vehicle Rule, a decision that caught Polestar off guard. The legislation focuses on national security and private security concerns involving connected vehicle technologies.

The U.S. government believes that companies owned by foreign adversaries, including Polestar, could pose risks involving the sharing of customer data. Officials also believe connected vehicles could be vulnerable to hacking by malicious actors.

Because Geely holds a majority stake in Polestar, the Swedish brand falls within the scope of the restrictions. The rule prevents the sale of vehicles equipped with technologies connected to designated foreign adversaries, including China, creating uncertainty over Polestar’s future in the American market.

Why Volvo Received an Exemption While Polestar Did Not

Despite also being owned by Geely, Volvo received an exemption from the U.S. ban. The Swedish automaker demonstrated that its data management systems and software could be cleaned and separated from its parent company.

Polestar did not receive the same exemption, leaving the restrictions in place for the brand. The difference highlights the importance of demonstrating separation between a vehicle manufacturer’s systems and its parent company’s technology and data operations under the rule.

Polestar Prepares for a Future Beyond U.S. New-Car Sales

Polestar’s recent U.S. sales growth has helped the company move closer to clearing its remaining 2026 inventory, even as its global retail sales decline. With the Connected Vehicle Rule set to end its new-car sales in the United States starting in 2027, the automaker is turning toward Europe, where upcoming model deliveries and demand in key markets are central to its strategy.