Electric vehicle maker Polestar alleges the Trump administration misled the company before imposing a ban on its sales in the United States. The Chinese-owned automaker stated it was kept in a state of uncertainty regarding its market access.

Polestar informed its dealers that it is still attempting to understand the specific reasons behind the decision to bar its vehicles from the US market. The company described the period leading up to the ban as one where it felt "strung along" by officials.

Regulatory Uncertainty

The dispute highlights the volatility facing foreign automakers in the US. Polestar’s statement suggests a lack of clear communication from regulators prior to the enforcement of the ban.

The automaker has directed its dealer network to await further clarification while it seeks to comprehend the basis for the exclusion from the American market.

Polestar (NASDAQ: PSNY) shares fell in premarket trading on Monday despite the company reporting record retail sales for the first half of 2026. The stock declined 1.61% to $14.66, while PSNYW dropped 22% to trade around $4.10. The movement contrasts with S&P 500 futures, which were gaining about 0.4% at the time.

The company achieved record retail sales of 30,423 cars in the first half, representing an increase of 0.4%. However, second-quarter retail sales declined 4% year-over-year to 17,296 units. Polestar CEO Michael Lohscheller highlighted growth in key markets including the UK, Germany, and South Korea. The company expanded its retail network to 235 sites, a 39% increase from the previous year, and is preparing for the launches of the Polestar 5 and Polestar 4 SUV.

Analyst forecasts for the upcoming financial update on September 3, 2026, indicate a mixed outlook. The consensus EPS estimate stands at 168 cents, up from 1680 cents year-over-year, while revenue is projected to reach $839.80 million, down from $1.42 billion. The stock currently carries a Sell rating with an average price target of $15.00. Recent analyst actions include a downgrade to Underweight by Cantor Fitzgerald on February 19 and a target price raise to $15.00 by Barclays on January 23.

Technical indicators suggest bearish momentum for the stock. The 12-month performance shows a decline of 53.58%, with shares trading below the 20-day simple moving average (SMA) of $18.37. The MACD remains below its signal line. Key resistance is identified at $19.84, corresponding to the 50-day SMA, while key support sits at $11.75, the 52-week low.

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