Polestar will not appeal the US ban that prevents it from selling new cars beyond the 2027 model year, leaving 32 dealerships in limbo.
The brand, citing Chinese ownership and technology, was blocked by the US Department of Commerce last month.
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Volvo, also owned by China's Geely, fought the ban and won an exemption. Polestar, however, says it won't pursue the same route.
“We will instead focus our investments on markets where we have a strong brand position and ability to achieve profitable growth, with a strong weighting towards Europe,” said spokesman Michael Ofiara.
Last year, Polestar sold only 5,747 vehicles in the US, accounting for 6% of global sales.
The company could have contested the decision in court but chose not to.
Dealers Left Stranded
Many Polestar dealers, who often also sell Volvo models, invested millions in new facilities for the EV brand.
One dealer, Matthew Haiken, told the Wall Street Journal he paused construction on a New Jersey dealership after the ban was announced.
Learning that Polestar won't appeal is “really upsetting,” he said.
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How Polestar will compensate dealers remains unclear.
Attorney Russell McRory noted that state laws often require manufacturers to compensate dealers when exiting a market, but bankruptcy can sidestep that obligation.
Polestar says it will work with dealers on the transition but hasn't offered specifics.
Discounts and Service Commitments
Polestar is now offering discounts of up to $25,000 on the Polestar 3 and 4 to clear inventory.
Buying from a brand leaving the US carries risk, but the company assures that service centers will remain open to support existing customers.
Polestar is not going out of business; it will continue operations in other markets, particularly Europe.
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The brand's US exit is a blow to customers and dealers who hoped it would become a serious rival to Tesla and European luxury brands.
