Polestar is currently offering up to $25,000 off selected models in the United States through a campaign it calls the Summer of Clarity Event, running until 31 July 2026. The name is cheerful, the circumstances behind it are not. The brand is clearing its remaining US inventory before a federal ban takes effect that will prevent it from selling new cars there from the 2027 model year onwards, and it needs to convert those cars into cash quickly. That pressure sits on top of a financial situation that has been worsening for some time, including a first-quarter net loss of $383 million, more than double the same period a year earlier, and a reverse stock split and sustained financial pressure that I’ve covered in detail separately.
The discounts are among the largest single-model cuts seen in the US EV market. Polestar is offering $25,000 off the 2026 Polestar 4 for cash buyers, bringing it to around $32,800, and $23,000 off the 2025 Polestar 3, with the entry long-range single-motor version dropping to $44,500. At those prices, the Polestar 4 undercuts several mainstream American EVs on sticker, though inventory is limited and buyers may find little choice of colour or configuration.
Why Is Polestar Being Banned From the US?
The short answer is ownership. The US Commerce Department’s Bureau of Industry and Security denied Polestar authorisation under the Connected Vehicle Rule, which bars manufacturers owned or controlled by China from selling connected vehicles in the US from the 2027 model year onwards. Polestar is majority-owned by Geely, which is a Chinese company.
The decision contains an irony that Polestar has been vocal about. The Polestar 3 is built in South Carolina, on a line it shares with the Volvo EX90. The North American Polestar 4 is built in South Korea. Neither car is made in China. Volvo, which shares Geely as its ultimate parent and builds at the same American plant, received the authorisation that Polestar was denied. An American-assembled Polestar is blocked from sale while its Volvo sibling, built on the same line, continues.
Polestar existing 2025 and 2026 inventory can still be sold, serviced and warrantied. But no new models can enter the US market once the 2027 model year begins.
The Discounts in Detail
For cash buyers, the headline savings come from what Polestar calls its Clean Vehicle Incentive. The 2026 Polestar 4 single motor (approximately 499 km / 310 miles of range, 272 hp) falls from around $57,800 to approximately $32,800. The dual-motor version (approximately 451 km / 280 miles, 544 hp) drops from around $64,300 to between $37,900 and $39,300.
The 2025 Polestar 3 long-range single motor (approximately 644 km / 400 miles, if you’re comparing with EVs offering over 600 km of range in Europe) falls from $67,500 to $44,500. The dual-motor Performance variant drops from $79,400 to $56,400.
For buyers financing rather than paying cash, Polestar offers 0% APR over 60 months with smaller discounts of around $18,000. Lease deals fold in non-cash credits of $19,000 to $20,000 embedded into monthly payments, bringing the Polestar 4 to $399 per month and the Polestar 3 from $579 per month. All financing runs through Volvo Car Financial Services and requires delivery by 31 July.
Existing owners can add a loyalty bonus on top: $4,000 toward a 2025 Polestar 3 or $1,000 toward a 2026 Polestar 4, applicable to remaining lease payments including excess wear and mileage.
A Company Under Pressure
The urgency behind these discounts is not only about the ban. Polestar reported a $383 million net loss in Q1 2026, with gross margin swinging negative and cash falling 42% in three months to $676 million. Geely and Volvo converted approximately $640 million of shareholder loans into equity in the first half of 2026 and extended loan terms to stabilise the balance sheet. Those measures bought time, but they also underline that Polestar is not in a position to sit on depreciating inventory.
US sales had already been falling before the ban became clear: down 42.2% in the first half of 2026 to 1,895 vehicles, part of a declining trend stretching back to July 2025. The Summer of Clarity Event is, in practice, a clearance sale with a marketing wrapper.
What Polestar Is Doing Instead
CEO Michael Lohscheller has publicly reframed the US exit as a reason to focus on Europe, which currently accounts for close to 80% of Polestar’s retail sales. The brand is preparing the Polestar 5 grand tourer for European deliveries this summer, and has confirmed that the Polestar 7, a compact SUV, will be built in Slovakia, making it the brand’s first European-assembled model.
That European pivot matters for the brand’s longer-term credibility. Geely is one of the most internationally active Chinese automotive groups, with Volvo, Zeekr and Smart under the same ownership umbrella, and is building out European manufacturing capacity alongside its existing operations. Polestar’s future as a brand depends significantly on whether it can convert its European foothold into sustainable volume.
In the UK, Polestar registered 2,554 vehicles in June 2026, down 2% year-on-year, a modest decline but the first year-on-year drop in 2026. In Germany, first-half registrations rose 27%, with 603 vehicles in June alone. The European picture is mixed but not catastrophic, which is precisely why the company is leaning into it.
FAQ
Why is Polestar leaving the US market?
The US Commerce Department denied Polestar authorisation under the Connected Vehicle Rule, which bars Chinese-owned or controlled manufacturers from selling connected vehicles in the US from the 2027 model year. Polestar’s majority owner is Geely, a Chinese company. Existing 2025 and 2026 inventory can still be sold, but no new models can enter the US from 2027.
Why is the US ban controversial?
Because the cars affected are not built in China. The Polestar 3 is assembled in South Carolina alongside the Volvo EX90, and the Polestar 4 is built in South Korea. Volvo, which shares the same Geely parent and the same South Carolina plant, received the authorisation that Polestar was denied.
How much can you save on a Polestar in the US right now?
Up to $25,000 off the 2026 Polestar 4 for cash buyers, and $23,000 off the 2025 Polestar 3. The offer runs until 31 July 2026. Lease and finance options carry slightly smaller but still significant credits.
Is Polestar in financial difficulty?
Yes. The brand reported a $383 million net loss in Q1 2026, with cash falling 42% in three months. Geely and Volvo converted $640 million of shareholder loans into equity in H1 2026 to stabilise the balance sheet. US sales fell 42% in the first half of 2026.
Where will Polestar focus after the US exit?
Europe, which already accounts for close to 80% of Polestar’s retail sales. The Polestar 5 is due for European deliveries in summer 2026, and the Polestar 7 compact SUV will be built in Slovakia as the brand’s first European-assembled model.
Featured Image Source: Polestar
Latest News
