Polestar’s departure from the U.S. is escalating into a fierce rivalry.

Polestar’s exit from the U.S. new car market shows signs of turning into a battle of wits: A dealer in New Jersey is suing the manufacturer, claiming that the Connected Vehicle Rule, which prompted Polestar to withdraw from the U.S., is merely a convenient pretext.

Prestige Imports is taking Polestar to court. According to Automotive News and Inside EVs, the dealer accuses the Chinese manufacturer of violating New Jersey’s Franchise Practices Act. Polestar failed to observe the required 60-day notice period nor provide a sufficient reason for ending the business relationship. Starting with the 2027 model year, Polestar will not be allowed to sell new vehicles in the U.S. due to the Connected Vehicle Rule, though older model years can still be sold.

Prestige Imports questions exactly this reasoning. The dealer claims that Polestar has been planning to withdraw from the U.S. for two years and ultimately used the decision by the Department of Commerce as a welcome exit strategy. Volvo, the group’s sister company, serves as evidence in this regard. It is also under Geely’s influence but received an exemption. According to U.S. Senator Bernie Moreno, Volvo met a lengthy list of requirements to obtain this exemption, whereas Polestar did not take that path. Sweden’s Minister for Foreign Trade, Benjamin Dousa, also stated that his government supported Volvo in the process. Polestar apparently did not request such assistance.

Whether there is indeed a long-planned departure behind this must now be determined by a court. Theoretically, there is an economic reason: Moreno claims that Polestar lost up to $35,000 per car sold in the U.S. This figure has not yet been confirmed. What is certain, however, is that the manufacturer has long shifted its focus elsewhere. Approximately 80 percent of its sales come from Europe. Perhaps the Connected Vehicle Rule was not the sole reason for the split, but rather the right moment to declare definitively, “It’s not you, it’s me.”