US Bans Polestar Sales After 2027 — Owners Fear Resale Value Collapse

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Some Polestar owners are worried the value of their EVs will collapse.

Polestar says it remains committed to servicing its vehicles in the US.

Dealers are confused about why Polestar was knocked back, but Volvo wasn’t.

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.

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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.

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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.

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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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