A Polestar dealer in New Jersey has filed a lawsuit over the brand's exit from the U.S. market
Prestige Imports, a dealership based in New Jersey, has filed a lawsuit against electric vehicle manufacturer Polestar, accusing the company of violating state franchise law. The lawsuit stems from Polestar’s decision to exit the U.S. market. The company explained this move by stating that the U.S. Department of Commerce did not renew its license to sell connected vehicles in the country, according to InsideEVs.
Prestige Imports claims that Polestar had been planning to exit the U.S. for two years and used the requirements of the Connected Vehicle Rule as a pretext. This rule prohibits the sale of vehicles with software linked, in particular, to China or Russia.
According to the dealer, Polestar did not provide the required 60-day notice of termination of the franchise agreement and did not have valid grounds for doing so. The lawsuit also states that the company could have been allowed to continue sales, similar to Volvo Cars.
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Volvo Cars, a sister company of Polestar that is also owned by the Geely Group, received special permission from the U.S. Department of Commerce to continue selling connected vehicles after fulfilling the specified conditions. Prestige Imports claims that Polestar deliberately failed to meet similar requirements.
Ohio Republican Senator Bernie Moreno told CBT News in July that Volvo agreed to meet a complex list of requirements, while Polestar, he said, used the restrictions as a convenient excuse. Moreno also claimed that Polestar was losing up to $35,000 on every car sold in the U.S.
Swedish Minister for Foreign Trade Benjamin Dusa told Automotive News that he personally assisted Volvo Cars with the licensing process and traveled to Washington alongside the company’s CEO, Håkan Samuelsson. According to him, Polestar did not make such a request. The lawsuit also alleges that the brand continued to encourage dealers to invest and, as recently as February 2026, agreed to a multi-year expansion.
