Premium electric vehicle maker Polestar reported a 4% year-on-year sales slide for the second quarter of 2026 just weeks after being banned from selling cars in the U.S.
The Department of Commerce’s Bureau of Industry and Security did not grant it authorization to sell vehicles from model year 2027 onwards, because of its connected vehicle technology linked to China.
However, its Geely-owned sibling brand, Volvo Cars, earlier was granted permission to continue operating in the U.S. with no explanation yet given for the apparent discrepancy in decisions.
Polestar reported global sales of 17,296 electric vehicles in Q2, compared to 18,026 units in the same period in 2025. Sales in the first half of this year reached a record-high of 30,423 vehicles, with just 1,861 of those sold in the U.S.
The company’s statement said its retail sales volumes excluding the U.S. are presented separately following the decision by U.S. authorities in respect of the Connected Vehicle Rule.
Polestar is expanding its retail sales network in Europe and Asia, now standing at 235 sites, a growth of 39% compared to last year, said its CEO Michael Lohscheller in the statement.
“Delivering record sales in the first half of the year, despite regulatory and market headwinds, is a significant achievement,” said Lohscheller. “We continue to make progress across the business, delivering strong growth in several key markets, especially in the U.K., Germany, South Korea and the Iberia region,” he added.
