Polestar’s second-quarter results show a small but meaningful wobble: retail deliveries slipped about 4% year-on-year in Q2 even as the maker reported a modest gain across the first half. The drop comes as the company prepares to remove the US from its sales footprint following a regulatory decision that blocks its future connected-vehicle imports.
In Q2 Polestar delivered an estimated 17,296 cars, down from 18,026 a year earlier, a decline that underlines the pressure on growth for this young EV brand. That pullback is notable because it follows an unfolding regulatory situation rather than a sudden market shift. Investors and observers will be watching whether this is a temporary blip or the start of a tougher stretch for demand.
When US figures are set aside, quarterly retail sales slid 3.9% to 16,175 vehicles, compared with 16,818 in the prior year period. The narrowing gap without US numbers suggests the decision to exit that market is already altering how results are presented and perceived. For a company still building scale, small percentage moves can have outsized attention.
Across the first six months of 2026 Polestar recorded what it called a “record” in total retail sales, edging up 0.4% to 30,423 vehicles from 30,289 in the same span last year. That tiny advance is being framed as progress by management, even as the company navigates headwinds. Context matters: a minor gain can look very different depending on where the business is investing and how regional demand shakes out.
Excluding the US market, first-half retail sales actually rose 3.1% to 28,562 cars, showing stronger performance in Polestar’s other markets. Growth outside the US is a real bright spot, with several European and Asian markets buying more of the brand’s cars. That regional strength will be key as the company reshapes its strategy around fewer territories.
“Delivering record sales in the first half of the year, despite regulatory and market headwinds, is a significant achievement.” “We continue to make progress across the business, delivering strong growth in several key markets, especially in the UK, Germany, South Korea and the Iberia region.”
Polestar has said it will start reporting retail sales with US numbers excluded, a change tied directly to a recent ruling under the Connected Vehicle Rule. That reporting shift is meant to give a clearer view of performance in markets where Polestar will continue to operate without the complications the US decision creates. Firms often adjust disclosure when a major market becomes temporarily or permanently unavailable.
The company announced in late June that it would cease vehicle sales in the US from 2027 onwards, after the Bureau of Industry and Security declined to approve its application under the rule. That decision forces a strategic recalibration for Polestar, which must now lean harder on Europe and Asia for volume and revenue. Maintaining momentum in those regions will determine how quickly the firm can offset lost US sales.
The Connected Vehicle Rule is a national security measure that prohibits the import and sale of connected vehicles along with associated software and hardware linked to foreign adversary nations, spanning technologies such as Bluetooth, Wi-Fi, cellular connectivity and certain satellite communication systems. US authorities have cited concerns about data collection from American vehicle owners as a primary rationale for the rule, which targets vehicles with ties to certain foreign entities. The regulation was introduced in January 2025 and has remained in force across administrations.
Despite the long-term shift away from the US market, Polestar said it will sell its existing inventory of Polestar 3 and Polestar 4 models currently in the country. That move gives current buyers and dealers a finish line for the models already imported, while the company plans the next steps for product and market focus. How Polestar balances inventory clearance, brand momentum and investment in growth markets will shape its story over the next year.
