Polestar will soon bid farewell to the United States and instead focus on markets where its models are more popular. That’s bad news for customers across the country, and worse news for the 32 Polestar dealerships operating here.

The US Department of Commerce’s Bureau of Industry and Security said last month that it would not allow Polestar to sell new cars in the country beyond the 2027 model year, citing the company’s Chinese ownership and technology.

Read: Polestar Owners Fear A Fisker-Style Resale Collapse After US Ban

Polestar could have contested the decision and pushed government officials for an exemption like the one granted to Volvo. If that failed, it could have gone to court. Despite having those options, Polestar says it won’t appeal the ban.

“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,” Polestar spokesman Michael Ofiara told the Wall Street Journal.

Last year, Polestar sold a measly 5,747 vehicles in the United States, even though the Polestar 3 and Polestar 4 are both excellent cars. With numbers that thin, the US accounted for just 6 percent of the company’s global sales, and it’s entirely possible the brand would have walked away before long even with permission to keep selling.

The Dealer Fallout

Dealerships are now left holding the bag. Many Polestar dealers, who frequently sell Volvo models too, have spent millions building out facilities for the EV-focused brand, presumably hoping it might one day grow into a serious volume seller to rival European rivals and maybe even Tesla.

One dealer owner, Matthew Haiken, told the WSJ he had sunk “millions” into a new Polestar dealership in East Hanover, New Jersey, only to pause construction last month when the ban was first announced. Learning that Polestar won’t appeal the decision, he said, is “really upsetting to hear.”

How the company plans to make things right with dealers is still unclear. According to New York attorney Russell McRory, state laws often require manufacturers to compensate dealers when they exit a market, and the usual way to sidestep that obligation is bankruptcy. Polestar says it will work with dealers to “manage this transition,” but hasn’t offered specifics.

Deals On The Way Out

Now that it’s heading for the exit, Polestar wants the stock gone, and earlier this month it put real money on the hood of the Polestar 3 and 4. The discounts run as deep as $25,000, though buying from a brand on its way out of the country carries obvious risk. The saving grace is that Polestar isn’t going under. It stays in business everywhere else, and its US service centers will remain open to look after the cars already sold.

“We will continue to sell our existing stock of vehicles in the U.S., and our retailers will continue to support customers through sales, service and aftersales activities,” a press spokesman told the publication.

Blame Washington for missing out on this one. The U.S. declined to authorize Polestar to sell cars here after the 2027 model year, right as the brand is gearing up for its next big debut. That model is a new variant of the 4, due in September. Shortly after the official teaser surfaced, a camouflaged Polestar 4 SUV prototype turned up lapping the Nurburgring, giving us our first proper look at what American buyers will not get.

More: Buy A New Polestar For $25,000 Off. Small Catch, It’s Leaving The US

The SUV badge oversells it, since the spy shots point to something closer to a slightly raised wagon. As the more practical counterpart to the existing Polestar 4 Coupe, it brings in a flatter roofline, a set of roof rails, and a more upright tailgate with a genuine rear windscreen, the very thing the original car goes without.

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For all those changes, everything from the nose back to the B-pillars looks lifted straight from the 4 coupe. The lower half of the profile, the full-width LED taillights, and the rear bumper carry over as well, which keeps Polestar’s development spending in check and speeds the second body style to market.

Performance Hardware

The prototype runs 22-inch forged Performance wheels wrapped around Brembo brakes with gold calipers and large ventilated discs. That hardware comes with the dual-motor Polestar 4 Coupe through the optional Performance pack, which also brings active ZF dampers with coil springs into the mix.

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Those same components will almost certainly carry into the Polestar 4 SUV, retuned to suit its slightly different weight balance and aerodynamics. Behind the wheel of the camouflaged tester was Polestar’s chief test driver Joakim Rydholm, the man responsible for sharpening the EV’s handling before it goes on sale.

More: We Drove The Polestar 4 And It Wants To Change Your Mind On EVs

On the performance front, the dual-motor Polestar 4 Coupe produces 537 hp (400 kW / 544 PS), enough to run from 0-100 km/h (0-62 mph) in 3.8 seconds with a WLTP range of 590 km (367 miles). The SUV should carry the same output, though its acceleration and range each fall off by a small margin.

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A single-motor version of the coupe rounds out the range with 267 hp (200 kW / 272 PS), covering the same 0-100 km/h (0-62 mph) sprint in 7.1 seconds and stretching its WLTP range to 620 km (385 miles).

More: The US Just Banned Polestar From Selling New Cars, Even The One It Builds In America

The Polestar 4 SUV arrives on September 2, with production handled in South Korea. Polestar has confirmed sales across most global markets, and the glaring exception is the United States, off the list after the forced exit of the Geely-owned brand once the 2027 model year opens. Rivals range from the Tesla Model Y to Porsche’s Macan EV.

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Volvo spent the last few years methodically trimming its U.S. lineup until only crossovers remained. Sedans disappeared, wagons followed, and the company’s strategy seemed crystal clear: Americans wanted SUVs, so that’s what Volvo would sell. Now, however, the company appears to be reconsidering that approach, and the timing couldn’t be more interesting.

More: There’s Still Hope For Volvo Wagons After All

According to Automotive News, Volvo is evaluating a pair of electric midsize cars for the U.S. market that could arrive in 2028, potentially bringing both a sedan and a wagon back to American showrooms.

The vehicles would reportedly be based on Volvo’s new SPA3 platform, the same next-generation architecture underpinning the upcoming EX60. And since the cars are already being engineered for Europe, reworking them for American roads shouldn’t take much effort, according to a person briefed on the talks.

The EX60 features an 800-volt electrical system, allowing for faster charging while supporting a wide range of battery capacities, motor configurations, and performance levels. If approved, the two models would evidently revive familiar 60- or 70-series nameplates, with a rugged Cross Country wagon variant also said to be under consideration.

Read: Polestar Owners Fear A Fisker-Style Resale Collapse After US Ban

While it’s relatively rare to see an automaker adapt a European-spec vehicle for the U.S. market, Volvo believes the feat isn’t too tough to pull off in this case. That said, expectations appear conservative. Combined annual sales are said to be projected at roughly 10,000 units, with pricing expected to begin somewhere in the low-$50,000 range.

Betting On Wagon Nostalgia

If it moves forward with this change, it’s easy to see how the brand could market these cars. Sedans and, most notably, wagons are a deeply ingrained part of how Volvo got to where it is today. As we’ve seen across the industry, brands are eager to monetize nostalgia at every turn. At least this time it sounds like the enthusiasts might benefit most.

Edmunds analyst Ivan Drury told Autonews that he believes Volvo could carve out a niche as a “counter-culture cool” electric wagon, giving buyers an alternative in a segment that has largely disappeared beneath the SUV boom.

There’s another factor working in Volvo’s favor. With Polestar effectively retreating from the U.S. after tariffs derailed its product plans, Geely’s American portfolio suddenly has a sedan-shaped hole in it. A stylish Volvo EV could help fill that gap while keeping customers within the broader corporate family. The move would also hand Volvo retailers some badly needed fresh metal after the brand’s U.S. market share slid to 5.8 percent last year, the lowest it has been since 2019.

The Polestar 4 is an unconventional all-electric four-door coupe crossover that grabbed attention for one strange reason, the absence of a rear window. Now the automaker is broadening the lineup with a new bodystyle that promises a healthier dose of practicality.

More: We Drove The Polestar 4 And It Wants To Change Your Mind On EVs

While some expected the model to be a wagon, it has officially been announced as the Polestar 4 SUV. The teaser focuses on the rear quarter, where the EV looks more like a hatchback from this angle.

A Rear Window At Last

The most notable changes compared to the regular Polestar 4 are the redesigned roofline, the slightly reworked rear glass, and the upright tail. That upright tail brings a rear windshield on the tailgate, officially making this a five-door EV. The rest of the design is expected to carry over unchanged.

Polestar 4 SUV

The SUV will almost certainly keep the coupe’s 2,999 mm (118 in) wheelbase, and it may well match the 4,840 mm (190.5 in) overall length too, since the rear bumper appears to be a carryover piece. What it adds, in Polestar’s words, is “an added layer of flexibility and practicality, with versatile storage capabilities for every journey.”

More: Buy A New Polestar For $25,000 Off. Small Catch, It’s Leaving The US

At the same time, the SUV will retain the “design, performance, and sustainability credentials” of the Polestar 4 coupe. The 400V architecture will offer a WLTP range of up to 630 km (392 miles) for the single-motor RWD variant, while the dual-motor AWD model will generate up to 544 hp (408 kW / 552 PS). Polestar adds that the SUV rides on retuned chassis components meant to strike a balance between refinement and sporty responses.

Everywhere But The States

Polestar has set the market launch for September 2 in the UK. It has also confirmed that the Polestar 4 SUV will be built in Busan, South Korea, and sold across most markets where the Geely-owned brand currently operates. That list won’t include the US, where Polestar has been forced to wind down sales after the 2027 model year over the “Connected Vehicle Rule.”

Polestar 4 Coupe

After the US government’s shock announcement that Polestar can no longer sell its vehicles in the US beyond the 2026 model year, the company has rolled out steep savings for anyone brave enough to buy one of its last remaining cars. If you’re not worried about the brand’s impending US exit, you could walk away with an exceptional deal.

Polestar has just announced a $25,000 clean vehicle incentive for both the Polestar 4 Rear Motor and the Dual Motor. With this significant price cut, it’s now possible to buy a Polestar 4 Rear Motor for just $31,400, which is less than the price of a new Chevrolet Bolt RS. The Polestar 4 Dual Motor version is available for a measly $37,900. To put that into perspective, a Model Y Performance will set you back at least $57,990.

Read: Polestar Owners Fear A Fisker-Style Resale Collapse After US Ban

If you don’t have the cash to buy a new Polestar 4 up front, the company is also offering a $19,000 incentive that can be applied to leased vehicles. At just $399 per month for 39 months, the leasing deal is certainly rather tempting for those in the market for a new EV, and a very impressive one at that.

Polestar 3 Savings

Of course, it’s not just the Polestar 4 that’s available with big savings. Polestar has announced a $23,000 incentive for the larger 3 SUV, lowering the price of the Long Range Single Motor to just $44,500. Additionally, the Long Range Dual Motor is available for $50,400, and the flagship Long Range Dual Motor with Performance Pack is available for $56,400, down from $79,400.

Leases for the Polestar 3 are also available for as little as $579 per month for 27 months, depending on your location, and leases also include a $20,000 incentive.

Importantly, Polestar’s current deals are only available until July 31, and shoppers must take delivery by that date. Obviously, buying a vehicle from a company that will soon no longer exist in the US is a risk, but unlike Fisker, Polestar will continue to operate globally, and the company says it will continue to operate its existing service centers across the country.

Polestar

Last week brought new that the US Department of Commerce’s Bureau of Industry and Security had denied Polestar authorization to sell any of its vehicles in the US beyond the 2027 model year. That might read as good news to pundits who want cars running Chinese-derived hardware and software off American roads, but for people who already own a Polestar, it’s about the worst outcome imaginable.

The decision blindsided dealers. Volvo was recently granted an exemption to keep selling its cars in the United States, despite the fact that those vehicles also carry various hardware and software components sourced from China, which makes the split treatment hard to square.

Read: The US Just Banned Polestar From Selling New Cars, Even The One It Builds In America

Current owners, along with buyers still waiting on delivery of a new model, worry the ruling could drag down the resale value of their EVs, and they’ve started questioning how long Polestar’s service network can hold together. Beyond that, many fear their cars will stop receiving regular software updates and that the onboard technology could fall behind what’s offered in other markets, Reuters reports.

Also: Dealer Is Selling Dozens Of Nearly New Fisker EVs For The Price Of Used Corollas

Meanwhile, some shoppers are welcoming the chaos. They’re betting that sinking resale values will make used Polestars a lot cheaper, and a few are drawing comparisons to the fire-sale prices that followed Fisker’s 2024 bankruptcy.

Could Volvo Step Up?

Polestar

Speaking with the publication, Polestar owner Ryan Rodriguez said he had purchased a 2024 model just weeks before the company’s shutdown was announced. Had he known the ban was coming, he says he would have looked hard at an EV from a different brand instead, and the prospect of warranty trouble somewhere down the line sits with him too.

Owners and dealers may bristle at Volvo landing an exemption while Polestar walked away with nothing, but Volvo’s network is likely to be the thing that keeps existing Polestar models on the road. Karl Brauer of iSeeCars figures Volvo should be able to soften “a lot of the otherwise negative effects” of Polestar getting pushed out of the US.

Not everyone is convinced, however. Owner Bill Baird, who hopes to hang onto his 2024 Polestar for years to come, told Reuters he would think twice before buying another, having already run into trouble getting his car serviced through Volvo dealerships. “I’d be a little wary of that, just for long-term support,” he said.

Polestar says it will continue to operate its 32 existing service centers across the country, all of which are located at Volvo dealerships, although the centers’ long-term viability remains uncertain. The automaker also maintains that all US vehicles will keep getting regular software updates.

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