Polestar Automotive Holding UK PLC Class A ADS

Polestar Automotive Holding UK PLC cut its full-year 2026 delivery forecast, citing the fallout from being barred from selling its newer vehicles in the United States. The Swedish, Geely-backed automaker now expects annual volume growth of low-to-mid single digits, down from a previous forecast of low double digits, implying full-year deliveries of roughly 61,900 to 63,100 vehicles. In June, Polestar became the first automaker forced out of the U.S. market after the Commerce Department denied it authorization to sell model year 2027 and later vehicles under a rule restricting Chinese-controlled vehicle software and data systems, and shares fell as much as 16% on the news. Second-quarter revenue fell 8% year over year to $727 million, missing estimates, while the company recorded about $130 million in U.S. restructuring charges tied to inventory, residual value guarantees, and employee and supplier provisions. Net loss narrowed 55.3% to $459 million, though first-half free cash flow worsened to negative $1.06 billion from negative $787 million a year earlier despite Polestar raising $700 million in fresh equity, and the company also opened its order book for the new SUV 4, the first of several refreshed models planned over the next few years.

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, the Swedish electric vehicle maker under China's Zhejiang Geely Holding Group, has cut its full-year delivery outlook after the Trump administration effectively barred Chinese-made cars from the U.S. market. The company lowered its annual sales growth forecast from "low double digits" to "low-to-mid single digits." In June, the Trump administration decided not to allow Polestar to sell its 2027 and later models in the U.S., making it the first automaker to be shut out of the U.S. market. CEO Michael Lohscheller said, "Despite the challenging environment, we continue to maintain disciplined operations and focus on improving the business." In the second quarter, net loss narrowed 55.3% year-on-year to $459 million, while revenue fell 8% to $727 million, including about $130 million in restructuring costs for its U.S. operations. Free cash flow for the first half was negative $1.06 billion, widening from a deficit of $787 million in the same period last year.

Honda confirmed to TechCrunch that it is ending production of the Prologue, its last all-electric vehicle in the U.S. portfolio. The Prologue, built at GM's Ramos Assembly Plant in Mexico, sold roughly 33,000 units in 2024 and 39,000 in 2025 before the federal tax credit ended and sales fell sharply. The move is part of a broader retreat, with Honda also canceling three planned EVs for the U.S. in March 2026, including the Acura RDX and Honda O Series sedan and SUV, citing tariffs and Chinese competition. Other automakers are pulling models as well: Polestar has been effectively banned from the United States without specific authorization from the U.S. Department of Commerce, though it will continue selling existing stock of Polestar 3 and Polestar 4 vehicles. Volkswagen has pulled back on the ID.4 electric SUV and the ID Buzz, saying it would no longer produce the ID.4 at its Chattanooga factory and that U.S. customers will be able to buy the ID.4 until the current inventory runs out, expected to last into 2027. Tesla ended production of the Model S and Model X this spring, Hyundai stopped selling the Ioniq 6 in the U.S., Nissan did not produce a 2026 Ariya for the U.S., and Volvo pulled its EX30 and EX30 Cross Country from the market.

Polestar's second-quarter retail sales fell 4% year-on-year to an estimated 17,296 vehicles, down from 18,026 in the same period last year. Excluding the US market, quarterly sales declined 3.9% to 16,175 cars. For the first half of 2026, overall retail sales edged up 0.4% to a record 30,423 vehicles, while excluding the US, first-half sales climbed 3.1% to 28,562 cars. The Geely-owned EV maker recently confirmed it will be excluded from the US market starting with the 2027 model year after the Bureau of Industry and Security declined to approve its application under the Connected Vehicle Rule. CEO Michael Lohscheller called the first-half record a significant achievement despite regulatory and market headwinds, noting strong growth in the UK, Germany, South Korea, and the Iberia region.

Polestar has been denied authorization to sell new models in the U.S. under a federal rule restricting cars with Chinese-linked connected-vehicle technology, beginning with the 2027 model year. The decision shocked Polestar drivers and dealers, raising concerns about resale values and the future viability of the brand's service network. Polestar, majority-owned by China's Geely Holding, said it will continue to sell pre-2027 models and provide access to its service network, but dealers like Matthew Haiken in New Jersey worry about sustaining their business with only service and used-car sales. Some owners fear software updates may lag behind other markets, though Polestar says support will continue according to product plans. Analysts note that Volvo's existing U.S. network may blunt some negative effects, but owners like Bill Baird remain wary of long-term support if Polestar dealers go out of business.

Polestar Automotive Holding UK confirmed that the U.S. Department of Commerce's Bureau of Industry and Security denied its authorization to sell connected vehicles in the U.S. from the 2027 model year under the Connected Vehicle Rule targeting China-linked technology. This effectively removes the U.S. as a future growth avenue and pushes the company to concentrate more heavily on Europe, where it already generates the bulk of its retail sales. The decision elevates regulatory and funding risk, with a recent going concern warning from Deloitte in Polestar's 2025 annual report now looking more relevant given negative equity, net losses of US$2,357.23 million in 2025, and reliance on Geely-backed debt and multi hundred million dollar equity raises. Before this setback, the most pessimistic analysts still penciled in about US$13.1 billion of revenue and US$661.1 million of earnings by 2028, highlighting sharply diverging views on whether Polestar's funding strain and market access challenges are temporary or signs of a deeper problem.

Polestar, a portfolio company of Geely Automobile Holdings, faces a prohibition on new vehicle sales in the United States because of government restrictions on Chinese connected car technology. The decision highlights how technology rules are affecting cross-border auto investments and the wider electric vehicle supply chain. Volvo, another Geely-linked brand, has secured a waiver to continue US sales under the same regulatory framework. The restriction introduces an additional consideration for Geely as it allocates capital, manages partnerships, and plans overseas exposure.

Polestar said the Trump administration is forcing it to stop selling vehicles in the U.S. starting with the 2027 model year under a new regulation targeting China-linked automakers. The Commerce Department's Bureau of Industry and Security declined to grant Polestar authorization to sell cars under the Connected Vehicles Rules, which restrict the import and sale of vehicles with connected technology linked to China. The rules cover Bluetooth, wireless internet, cellular connectivity, and some satellite communications due to national security concerns about data collection. Polestar, based in Sweden but majority-owned by China's Geely Holding, will continue selling existing stock of Polestar 3 and Polestar 4 vehicles in the U.S. and supporting customers through its service network. CEO Michael Lohscheller said the company will place greater emphasis on Europe, noting that 94% of its first-quarter 2026 retail sales came from outside the U.S.