US denial blocks Polestar sales, impacting electric car dealers

Dealers who invested in Polestar will lose the ability to sell the Swedish‑made electric vehicles in the United States next year after the federal government denied an authorization that would have let the company sidestep a Chinese technology ban. The U.S. Office of Foreign Assets Control rejected the request, citing concerns that Polestar’s supply chain includes components from China that fall under the new restrictions.

The decision means Polestar dealers will be barred from offering the brand’s cars in the U.S. market until the authorization is granted, which is unlikely in the near term. The move follows a broader crackdown on Chinese technology exports and reflects the administration’s tightening of rules on firms that rely on Chinese components, even if the vehicles themselves are manufactured elsewhere. The ban will affect Polestar’s sales strategy and could prompt the company to seek alternative markets or supply‑chain adjustments to maintain its presence in the U.S. automotive landscape.