Polestar Owners and Dealers Face Uncertainty as EV Brand Exits U.S. Market

Last month, Polestar stunned the auto world by announcing it would stop selling vehicles in the United States, leaving thousands of owners and dozens of dealers in a bind. The decision, which takes effect with the 2027 model year, came after the federal government denied the company authorization to continue sales under a rule that bans vehicles with Chinese-made connected software.

Polestar is headquartered in Sweden but majority-owned by China’s Geely, putting it squarely in the crosshairs of that regulation.

For owners like DL Byron, a Washington state inventor who bought a certified pre-owned Polestar 2 just days before the news broke, the move feels like a betrayal. “We’re the ones left holding the bag, with no compensation for the sudden loss in market value,” he said. Dealers are also scrambling.

Matthew Haiken, who runs a Polestar dealership in Short Hills, New Jersey, notes that state franchise laws usually protect dealers when an automaker goes bankrupt or leaves voluntarily. But this is different, Polestar isn’t failing; it’s being forced out by a government rule. “This is the first time that anyone has said, ‘Hey, this is not us.

It’s outside our control. It’s the government,’” Haiken explained.

Despite the turmoil, Polestar insists it will honor warranties and service commitments. , and it plans to keep supporting American customers. Yet questions linger: Who will service these cars years from now? Will software updates continue? And as dealers face the prospect of million-dollar facilities with no new cars to sell, some may shut down.

Reddit users report that service centers in San Francisco and San Jose are dissolving, potentially forcing some owners to travel hundreds of miles. Haiken, however, remains optimistic. He’s seen a surge in sales thanks to deep discounts, up to $25,000 off on Polestar 3 and 4 models, and believes customers still have faith in the dealer network.

“EVs are the future,” he said.