Trump administration bars Polestar from selling new EVs in the US under Connected Vehicle Rule


TL;DR

Commerce Department denied Polestar authorization under the Connected Vehicle Rule, barring new sales despite the Polestar 3 being built in the US.

The Trump administration has barred Polestar from selling new electric vehicles in the United States, denying the Geely-owned automaker authorization under the Connected Vehicle Rule. The decision, first reported by TechCrunch, means Polestar will not be able to sell any new models in the US once the rule’s software restrictions take effect for model year 2027 vehicles.

The Connected Vehicle Rule was finalized under the Biden administration on 16 January 2025 and took effect on 17 March of that year. It prohibits vehicles with software or hardware from Chinese or Russian entities in their connectivity and automated driving systems. Software restrictions apply starting with model year 2027, while hardware restrictions kick in at model year 2030.

Polestar is majority-owned by Geely, the Chinese automotive conglomerate that also controls Volvo Cars. That ownership structure is what triggered the rule, regardless of where the vehicles are actually manufactured. The Polestar 3, the company’s flagship SUV, is built at Volvo’s plant in Ridgeville, South Carolina, a facility Volvo has invested more than one billion dollars in expanding.

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Building cars on American soil was not enough. The rule targets the origin of the technology inside the vehicle, not the location of the assembly line. Even a US-built vehicle can be barred if its connectivity systems use software or components traceable to a covered foreign entity, and Polestar’s ties to Geely put it squarely in that category.

The inconsistency is hard to miss, because Volvo, which shares the same Geely parent company, was granted authorization under the Connected Vehicle Rule in May. Volvo and Polestar use the same South Carolina factory, yet only one was cleared to continue selling vehicles. Neither the Commerce Department nor Polestar has publicly explained the distinction, though Volvo’s longer presence in the US market and its separate corporate structure may have played a role.

Polestar said it will continue selling existing stock of the Polestar 3 and Polestar 4 in the US while those vehicles remain available. The Polestar 4 is built in Busan, South Korea, by Renault Korea Motors. The company added that global production of the Polestar 3 will shift exclusively to the South Carolina plant from the fourth quarter of this year, a move that was already planned before the authorization was denied.

The financial impact may be limited in the near term. Polestar reported that 94 percent of its retail sales in the first quarter came from markets outside the United States, and the company has been increasing its strategic focus on Europe. But losing US market access entirely removes any path to growing American sales at a time when the company is already under severe financial pressure.

That pressure is considerable. Polestar posted a net loss of $383 million in the first quarter, more than double the $166 million loss a year earlier. Revenue was flat at $633 million despite a seven percent increase in deliveries to 13,126 vehicles, and gross margins turned negative due to pricing pressure, tariffs, lower carbon credit sales, and currency effects.

The Connected Vehicle Rule is part of a broader US effort to limit Chinese technology in vehicles sold on American roads. A bipartisan Senate proposal would go further, banning Chinese-manufactured vehicles and components from the US market entirely. Combined with tariffs that have already forced a dozen EV models off the American market, the regulatory environment is increasingly hostile to any automaker with Chinese ties.

The rule was conceived under Biden but is being enforced under Trump, and the current administration has shown no interest in softening its application. Polestar’s denial is the most prominent example yet of the rule being used to block a brand that manufactures in the US and sells primarily in Western markets, solely on the basis of its Chinese parent company’s involvement in the vehicle’s technology stack.

Polestar now faces a choice about how much to fight for a market that already accounts for a small fraction of its sales, or whether to redirect those resources toward Europe, where it faces no comparable restrictions. The company said it remains committed to all its markets but did not outline any plan to seek a reversal of the Commerce Department’s decision.



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Meta stripped NameTag facial recognition code from its AI app one day after WIRED exposed it on 50 million phones. Meta says no decision has been made.

Meta removed nearly all traces of an unreleased facial recognition system from its smart glasses companion app on Friday, one day after WIRED reported that the software had been quietly embedded in an app installed on more than 50 million phones. The feature, which Meta internally called NameTag, was designed to convert faces captured by the company’s Ray-Ban smart glasses into unique biometric signatures and compare them against a database stored on the user’s device. WIRED also found that faces the system failed to recognise were cropped, indexed, and stored locally for future processing.

Andy Stone, Meta’s vice president of communications, told WIRED on Monday that the feature is “purely exploratory,” adding that no final decision has been made on what to do with it. That characterisation sits uneasily with the evidence WIRED documented. The version of Meta AI published the day of WIRED’s Thursday report contained several code libraries explicitly named for face recognition, a process for running the NameTag recognition pipeline, and a “Person recognised” alert the app would have shown if someone were identified.

Friday’s release stripped all of it out, along with a folder where the app would have stored the cropped images and biometric signatures of unrecognised faces. Meta did not answer WIRED’s questions about why the code was removed or whether the changes were planned before the story was published. A few fragments remain in the latest version, including an internal debug menu label and a dormant link meant to open a recognised person’s profile, pointing to parts of the system that are no longer there.

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The gap between Meta’s public statements and the code WIRED found is the central tension. Before the Thursday report, Stone dismissed the findings by writing that the company could not answer questions about how the system would work because “the feature does not exist.” Andrew Bosworth, Meta’s chief technology officer, called the reporting “incredibly misleading” and “absolutely dishonest.” Yet the code was functional enough to include three AI models, one to detect faces, another to crop them, and a third to encode them as biometric data, all embedded in the companion app for a product already at the centre of a mounting privacy crisis.

Meta declined to answer ten questions WIRED posed before publishing, including whether it had already created the database of face profiles NameTag uses, how long the app retains photographs and biometric data of unrecognised people, and whether that data would ever be sent back to Meta’s servers. The company also did not respond to questions about whether it was building NameTag for blind or low-vision users, or to criticism from privacy advocates who warned the system could let stalkers and abusers identify strangers in public.

NameTag first surfaced in February, when The New York Times, citing internal Meta documents, reported that the company was developing face recognition for its smart glasses and considering a launch as early as this year. One internal memo reportedly described releasing the feature during a “dynamic political environment” when privacy and civil liberties advocates would be distracted by other concerns. WIRED subsequently found that much of NameTag’s machinery had been built into the Meta AI app as early as January, months before any public acknowledgement, adding another layer to the company’s pattern of shipping first and disclosing later when it comes to its smart glasses.

Kade Crockford, director of the technology for liberty programme at the American Civil Liberties Union of Massachusetts, said the removal does not undo the original decision to ship the code and pointed to it as evidence that consumer privacy needs stronger legal protection than Congress has been willing to provide. The Massachusetts House of Representatives last week unanimously passed a consumer privacy bill that, if enacted as written, would impose strong enforcement provisions including a private right of action allowing aggrieved users to sue. “State lawmakers need to do their job and step up to protect consumer privacy,” Crockford said.

Meta’s sneaky tactics in slipping the face-recognition code into its smart glasses show exactly why data privacy bills need the teeth of strong enforcement,” Crockford added. “Companies like Meta prioritise their bottom line, so lawmakers need to speak in the only language its C-suite understands.” Whether a code removal prompted by investigative reporting constitutes a victory or merely a tactical retreat depends on what Meta does next, and on whether the regulatory pressure building on both sides of the Atlantic produces enforceable consequences before the feature quietly returns under a different name.



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