Volvo Car AB Series B

Republican Senator Rand Paul is blocking the bipartisan Connected Vehicle Security Act of 2026 in the Senate, legislation sponsored by Senators Bernie Moreno of Ohio and Elissa Slotkin of Michigan that would prohibit the import, manufacture, and sale of connected vehicles and related software and hardware linked to China and other designated foreign adversaries. The Senate Commerce Committee approved the bill in July, and it was placed on the Senate legislative calendar on September 22. Paul has argued the proposal could impact Mercedes-Benz and Ford Motor, and its proposed ownership threshold has raised questions about whether automakers with Chinese investors, including Aston Martin and Volvo Cars, could also be affected. The bill would go further than a Biden administration Commerce Department regulation from early 2025 that effectively banned Chinese automakers from selling or building passenger vehicles in the U.S. over concerns that sensitive driver data could be sent to China. President Trump added a wildcard last week by saying he would accept Chinese automakers building vehicles in the U.S.

Geely Auto's Galaxy brand launched the Galaxy TT electric sedan in China on Sept. 10 at a limited-time starting price of 129,900 yuan, or roughly $19,170, according to CnEVPost. The entry version carries a 63.8-kWh lithium iron phosphate pack from CATL and delivers 640 km of range on the China Light-Duty Vehicle Test Cycle, with every trim in the lineup shipping an 800-volt architecture and 6C fast charging that moves the battery from 10% to 80% in about 11.8 minutes. The launch price landed 16,000 yuan below the August pre-sale figure, and the entry trim gained 100 km of range, while rear-drive models produce 245 kW, or 329 horsepower, and reach 100 km/h in 6.5 seconds. The sedan will not reach U.S. buyers: a China-built car faces a 2.5% base duty, the 100% Section 301 tariff imposed in 2024 and the 25% Section 232 tariff applied in 2025, landing a $19,170 sedan closer to $43,600 at the port, and the Commerce Department's Connected Vehicle Rule blocks cars with meaningful Chinese ownership or software ties starting with the 2027 model year. Geely-controlled Polestar said the Commerce Department declined its authorization covering new model variants from the 2027 model year onwards, while Volvo Cars, also controlled by Geely, was cleared in May after reworking how its vehicle data is governed and routed. Geely's exports rose 205% year over year in August to 110,094 vehicles, roughly 41% of total sales, while domestic volume fell about 25%, according to CnEVPost.

Polestar Automotive Holding UK reported record first-half retail sales but lowered its full-year volume outlook amid pricing pressure and a US regulatory setback. The electric-vehicle maker said retail sales reached 30,423 vehicles in the first half, yet it now expects only low- to mid-single-digit volume growth for the full year. CEO Michael Lohscheller cited intensifying competition, pricing pressure, and the US Department of Commerce's denial of Polestar's application to sell model-year 2027 vehicles in the US under the Connected Vehicle Rule. The company will not appeal and will continue selling model-year 2026 vehicles in the US, but CFO Jean-François Mady said the restructuring triggered estimated material adjustments of $130 million. First-half revenue fell 4% to $1.36 billion, with a net loss of $842 million, while second-quarter retail sales slipped 4% to nearly 17,300 vehicles. Polestar ended June with $888 million in cash, and Geely Sweden and Volvo Cars converted about $640 million of loans into equity, with Volvo extending its remaining $660 million loan to December 2031.

Polestar reported second-quarter retail sales of 17,296 cars, a 4% decline from 18,026 vehicles in the same period last year, as the Swedish electric vehicle maker faces a ban from the U.S. market starting with the 2027 model year. For the first half of 2026, retail sales totaled 30,423 cars, up 0.4% from 30,289 in the first half of 2025. Excluding a subset of sales the company tracks separately, the half-year figure rose 3.1% to 28,562 vehicles, while second-quarter sales on that basis fell 3.9% to 16,175 cars. CEO Michael Lohscheller said the retail network now stands at 235 sites, a 39% increase year-over-year, and noted that first customer deliveries of the Polestar 5 are set to start while production of the Polestar 4 SUV has begun with first deliveries expected in the fourth quarter. The U.S. market exit stems from the Commerce Department's Connected Vehicle Rule restricting vehicles with Chinese software or hardware, and while sister brand Volvo Cars received authorization to continue U.S. sales, Polestar's request was denied. Existing U.S. stock of the Polestar 3 and Polestar 4 will remain available for purchase, and customers will retain access to the service network. The company announced its U.S. exit in late June, noting that 94% of first-quarter retail sales came from outside the U.S., and its stock fell more than 13% on the day of that announcement. Polestar posted a first-quarter net loss of $383 million, more than double its $166 million loss a year earlier, as tariffs and pricing pressure drove its gross margin to negative 3.2% from positive 10.3%.

Polestar said the Trump administration is forcing it to stop selling vehicles in the United States beginning with the 2027 model year after the Commerce Department denied authorization under the Connected Vehicles Rule. The rule, adopted in January 2025 and kept in place under President Trump, restricts import and sale of cars with connected-vehicle technology linked to China over national security concerns. The Sweden-based company, majority-owned by China's Geely Holding, said it will continue selling existing Polestar 3 and Polestar 4 vehicles in the U.S. and will not appeal the denial. Polestar had warned in 2024 that the rule would effectively prohibit its U.S. sales, and it has increasingly pivoted toward Europe, which accounted for 78% of first-quarter sales compared with just 6% from the United States. The decision raises questions about the future of the Polestar 3, its only U.S.-manufactured model, which Volvo Cars had planned to consolidate at its South Carolina plant.