GoKawiilis transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.
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Last month, Polestar shocked the auto industry when it announced that it was pulling out of the US.
The EV company’s decision came after the federal government denied its authorization to continue selling its cars despite a rule banning vehicles with Chinese-made connected vehicle software. Polestar, which is headquartered in Sweden but majority owned by China’s Geely, said it would stop selling its vehicles in the US starting with the 2027 model year.
For the thousands of Polestar owners and dozens of dealers in the US, it was a moment of disappointment and uncertainty. What would happen with their vehicles? Who would service them? Would they still get software updates? And at a time of record-high rates of EV depreciation, what would happen to the value of their cars? With these questions swirling, many are now looking around for someone to blame — and are not coming up with any obvious answers.
“It feels like we’re the ones left holding the bag, with no compensation for the sudden loss in market value on cars we just bought or leased,” said DL Byron, an inventor and content creator from Washington state, who picked up a certified pre-owned Polestar 2 just days before the company announced it was shutting down in the US. “At this point I have to trust that Polestar will honor its warranty and service commitments.”
“We deserve better.” — DL Byron, Polestar 2 owner
Volvo, which is also majority owned by Geely, has received authorization from the Commerce Department to keep selling its vehicles in the US despite its Chinese ties — a fact that also burns Polestar owners.
“The ‘brand‑within‑a‑brand’ model failed in the U.S., and that’s on Polestar — not on the owners who bought in,” Byron told The Verge. “We deserve better.”
Matthew Haiken, who owns a Polestar dealership in Short Hills, New Jersey, says that state franchise laws typically provide protections if an automaker goes bankrupt or voluntarily leaves the US market. Those protections exist because dealers make substantial investments that cannot easily be repurposed, including exclusive Polestar signage, long-term real estate leases, and specialized replacement parts.
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