‘We’re Uncertain About Our Actions’: Exploring the Disorder at Polestar Dealerships Following the Ban

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      Polestar is facing a sales ban in the U.S. starting in 2027, creating disruption within its network of 32 dealerships and leaving both dealers and owners uncertain about future operations and services.

      Dealers taken by surprise. Some dealers were caught off guard by the ban, while others had foreseen it but felt their concerns were disregarded.

      Volvo’s possible involvement in the transition. Although there are challenges, Volvo’s network might help with servicing, yet selling remaining Polestar inventory through Volvo dealerships poses issues.

      Dealerships in uncertainty. Franchises are unclear about the future of their investments and facilities, lacking a definitive plan.

      In summary: The unexpected U.S. sales ban on Polestar has led to confusion for dealers and owners, with unclear strategies for upcoming operations and inventory management.

      The U.S. government's decision to prohibit Polestar from selling vehicles in America due to regulations against Chinese technology has thrown the automaker's fledgling 32-dealership network into disarray. Dealers, owners, and Polestar's corporate teams are now challenged with navigating vehicle service, selling the remaining 2026 inventory, and managing real estate as the company is abruptly required to cease operations, according to various dealer sources who spoke to The Drive.

      This situation is without precedent. While automotive brands have come and gone over the years, typically there are indicators when companies are facing closure, especially for financial reasons. In this case, dealers reported that they had no warning prior to Geely-owned Polestar's announcement last Thursday that the government had revoked its certification to operate in the U.S.

      At least one dealer is currently constructing a flagship retail facility that may never see use, while others anticipated the ban but felt their advice went unheeded. Frustrations are mounting, with visible anger already surfacing.

      One dealer, who preferred to remain unnamed fearing backlash from Polestar, informed The Drive that there are still around 2,800 new Polestars headed for the U.S. market. Most, if not all, of these vehicles are Polestar 4s, as the planned 2026 Polestar 3 was not sold in America; the automaker intended to skip that model until 2027.

      "What’s the plan for the vehicle?" the dealer rhetorically questioned regarding lease incentives. "We’ll end up selling these 2026s midway through 2027. I have no idea what consumer demand will look like; it's going to have to be the cheapest lease we can offer, and we'll just have to take the risk. I don’t know who else is going to be interested. There’s no interest in the cars when there’s no brand to support them. It seems there are far too many cars here for us to handle."

      "We are in the dark about our course of action. We can't adapt quickly enough!" the dealer expressed. "What do we do with tens of thousands of dollars in fixtures?"

      Compounding the frustration is that Volvo, which Polestar separated from in 2017 and is also owned by Geely, was authorized to continue selling cars in the U.S. earlier this spring, despite its ties to China. Thus, Volvo’s dealer network could potentially assist with Polestar service or the sale of remaining inventory, but this too is complex. Polestar has been prohibited from selling cars through Volvo dealerships since becoming an independent company. Polestar and Volvo dealers can share the same site, and Volvo dealerships can service Polestar vehicles, but they must operate in distinct showroom buildings.

      To illustrate the confusion, a Polestar enthusiast and owner contacted The Drive and shared an email sent on Friday by the General Manager of Polestar Los Angeles, Reza Fatemi, just 24 hours after the ban announcement. The email indicated that the dealership, owned by Galpin Motors, would be moving to Galpin’s Volvo location "to serve you even better." A similar message was featured prominently on their website as of Wednesday.

      Email to Polestar Los Angeles customers dated June 26, 2026

      Galpin Volvo recently underwent extensive renovations last year and has limited capacity to construct a new facility for Polestar on its property, making the logistics of this move unclear. We sought a comment from Fatemi, but he declined to speak with us; however, a salesperson confirmed the relocation was taking place on Tuesday.

      Email to Polestar Los Angeles customer dated June 30, 2026

      On Tuesday evening, the Polestar enthusiast received an email from Polestar Los Angeles with an "urgent update," announcing that, effective July 1, 2026, Polestar Los Angeles would "consolidate our sales operations into our Galpin Volvo campus in North Hills." The message also stated that the Beverly Hills location would close, with all sales, inventory,