The 2020s have been a circus for electric car dealers.
Remember the Polestar in Short Hills, New Jersey? Opened in 2021. They survived the pandemic chaos when used EVs cost more than new ones. Then the feds handed out a $7,500 tax credit and doors flew open. Sales dipped when the credits vanished. Then they surged again as folks fled Elon Musk’s brand after his political pivot.
Matthew Haiken runs that Short Hills spot plus three others under Prestige Collection Auto Group. Now he has bigger problems than market swings.
In late June, the Commerce Department slapped a door in Polestar’s face. They denied authorization for the brand to bypass the rule banning connected cars with Chinese tech. So, here is the news: no new Polestars for sale in the US starting with the 2027 models.
“It’s so unfortunate.” Haiken feels for his staff. He feels for customers. He says he and thirty-one other US Polestar owners dropped millions into the ground. The denial hit like a punch to the gut.
Volvo? They got the nod. Same majority owner (China’s Geely). Same founder. The Commerce Department cleared Volvo back in March after some nice chats about data security and governance.
Haiken isn’t buying the government’s excuse.
“I am very frustrated in Polestar… I think they really dropped the ball. I don’t blame the政府.” He blames the car maker.
The ban stems from January 2025 regulations signed under Biden. Cameras. Microphones. GPS chips. All made in China. The government argues this is a national security hole. Commerce Secretary Gina Raimondo wasn’t wrong when she said foreign adversaries could exploit those sensors. “It doesn’t take much imagination,” she noted.
Polestar says it’s shifting focus to Europe. They claim 94% of Q1 2026 sales happened outside America anyway.
Haiken thinks that’s garbage. The Polestar 4 launched in Europe two years ago but didn’t reach the US until last December.
Still, the cars exist. The existing inventory stays on the lot. And the service network? It stays open too. Haiken’s center has enough business to survive on repairs alone.
“We have the volume to justify it.”
Most customers won’t notice much difference yet. Just no new arrivals next year.
What happens when your inventory runs dry? Nobody knows.
The Commerce Department declined to comment. Haiken keeps fixing the old cars. Waiting for the future.
