Business
Polestar Exits US Market as China Connected-Car Ban Bites
Polestar, the part Chinese-owned electric brand spun out of Volvo, is to abandon the United States after the Commerce Department refused it permission to keep selling new cars, making the company the first casualty of a sweeping American clampdown on Chinese technology in vehicles.
The decision is the opening blow from a rule designed to strip Chinese-written software out of any new car that connects to the internet, a measure Washington frames as shutting the door on the cameras, microphones and GPS systems that it fears could be turned into surveillance tools by a hostile state. For Britain’s small and medium-sized suppliers watching the trade winds, it is a pointed reminder that ownership and code, not just where a car is bolted together, now decide market access.
Polestar, which is controlled by the Chinese motoring giant Zhejiang Geely Holding Group, had applied to carry on selling under a waiver process written into the rule. The government turned it down, the company confirmed on Thursday. The Commerce Department did not immediately comment.
The brand said it would keep selling its remaining American stock and would honour servicing and repairs through its existing network, leaving current owners covered even as the shutters come down on new sales.
Drawn up under the previous administration, the “connected vehicle” rule restricts the import or sale of cars whose hardware and software are tied to China, on national-security grounds. The final rule took effect in March 2025 and has been carried forward rather than unpicked by the current White House.
Carmakers were given until March of this year to certify to the US government that their products carried no code written in China or by a Chinese company, or else to petition for authorisation to keep selling from the 2027 model year onwards. It is a high bar, and one that bites on corporate parentage as much as on the bill of materials.
That distinction explains an awkward split within the Geely empire. Volvo, also majority-owned by the Chinese group, secured authorisation in May to keep trading in the US, after what it described as a case-by-case review and talks with officials over its technology and data security. Polestar, working through the same process, did not clear it.
The rejection is the latest step in a broader American push to wall off Chinese-owned cars. Lawmakers have spent recent weeks floating legislation that would go further still, barring Chinese manufacturers from even building vehicles on US soil.
Polestar had sounded confident it would comply. Chief executive Michael Lohscheller said in a recent interview that the company was “in good dialogue with authorities” about an exemption, adding: “The US is important because obviously it’s a big market.”
Founded as Volvo’s performance and motorsport arm, Polestar became a stand-alone brand in 2017 and was hived off as a separate company in 2021, floating through a special-purpose acquisition vehicle at the height of the electric-car frenzy, when traditional carmakers and start-ups alike scrambled to chase Tesla’s vertiginous share price.
It launched with the limited-edition Polestar 1, a hybrid coupe priced at $156,000, and the Polestar 2, a sporting electric saloon built in China that took early aim at the Tesla Model 3. But a thin line-up left it exposed, particularly in the US, where buyers lean heavily towards SUVs and pick-up trucks. The shares now change hands at $19.22, down 96 per cent from a closing peak of $459.90 in November 2021.
Its Chinese ties had already proved costly. Punitive tariffs imposed by both the Biden and Trump administrations pushed the China-built Polestar 2 out of the American range. Today the brand sells the Polestar 3 SUV, made at Volvo’s plant in South Carolina, and the Polestar 4 SUV, shipped in from South Korea, neither of them built in China.
Polestar said it would now concentrate on shoring up its European business, which already accounts for roughly 80 per cent of global sales. The pivot lands at a moment when the politics of Chinese-built electric cars is fraught on both sides of the Atlantic, with the EU pressing ahead with tariffs on Chinese electric vehicles despite resistance from Germany.
Britain, for its part, is treading a notably different path, courting rather than repelling Chinese capital. The recent Nissan deal to build Chery’s cars in Sunderland underlines how far the UK’s calculation diverges from Washington’s, even as ministers face their own pressure to rethink the 2030 timetable for phasing out petrol cars.
For Lohscheller, the lesson is that the global car market is fragmenting along geographic lines. “The automotive industry is entering a new phase, based on regional dynamics,” he said on Wednesday. For Polestar, that new phase begins with a continent’s worth of ambition and a closed door in the world’s most valuable car market.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
Japan stocks lower at close of trade; Nikkei 225 down 4.09%
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LOS ANGELES — Negotiations between the Los Angeles Lakers and LeBron James have seen limited movement since free agency opened, with the team yet to make a formal contract offer to the 41-year-old superstar.
ESPN’s Shams Charania reported that a check-in call occurred early in the negotiation window following the NBA Finals, but communication has been sparse since then. The situation leaves James’ future with the franchise uncertain as both sides evaluate options.
James, who just completed his 23rd NBA season, holds a player option for the 2026-27 campaign. His decision on whether to exercise that option or enter free agency will significantly impact the Lakers’ offseason planning.
The Lakers have already secured Austin Reaves with a maximum contract extension and face pressure to build a competitive roster around Luka Doncic. James’ potential $50 million salary slot creates both opportunity and constraint for the franchise.
Background on Negotiations
The minimal communication stands in contrast to the high stakes involved. James has been the face of the Lakers since joining in 2018, delivering championships and breaking numerous records during his tenure.
Reports indicate James is seeking a maximum contract without taking a pay cut. His agent Rich Paul has been instrumental in navigating contract discussions throughout James’ career.
The Lakers must balance retaining their veteran leader with addressing roster needs around Doncic. The franchise’s priorities include adding complementary pieces that enhance the team’s competitiveness in the Western Conference.
James’ Career Context
James’ longevity and production at an advanced age continue defying conventional expectations. His ability to perform at an elite level while managing physical demands has been remarkable throughout his career.
The four-time MVP has expressed commitment to winning while considering family and long-term plans. His decision will reflect both competitive aspirations and personal priorities.
Previous contract negotiations with the Lakers have resulted in extensions that provided stability for the franchise. This latest chapter carries additional complexity given James’ age and the team’s roster construction needs.
Lakers’ Strategic Position
Los Angeles has invested heavily in building around Doncic as the team’s future cornerstone. James’ presence provides veteran leadership and scoring ability that could accelerate the young star’s development.
The franchise’s salary cap situation requires careful management. Retaining James while adding supporting talent presents challenges that the front office must navigate strategically.
Recent moves, including the Reaves extension, demonstrate commitment to key pieces. The organization’s approach to James’ situation will signal broader intentions for the upcoming season and beyond.
Potential Outcomes
James returning to the Lakers on a short-term deal remains the most likely scenario according to many observers. His deep ties to the franchise and comfort in Los Angeles provide strong incentives for continuity.
Alternative paths could include James exploring free agency or accepting a sign-and-trade arrangement. However, few teams possess both the cap space and competitive appeal to lure him away.
The Lakers’ leverage stems from their desire to maintain stability while building for the future. James’ unique status as both legend and active contributor creates a complex dynamic for negotiations.
Broader NBA Context
The league’s free agency period typically features intense activity as teams reshape rosters. James’ situation represents one of the most significant storylines given his historical impact and continued relevance.
Other star players face similar decisions about contract options and future destinations. The movement of veterans influences competitive balance across conferences.
The NBA’s salary cap and collective bargaining agreement create parameters that shape negotiations. Teams must balance immediate contention with long-term flexibility when approaching star contracts.
Impact on Lakers Roster
James’ decision will influence how the Lakers allocate remaining resources. His presence affects both on-court chemistry and off-court leadership dynamics.
The franchise’s ability to attract complementary talent depends partly on James’ commitment. His endorsement carries significant weight in free agency conversations.
Younger players on the roster would benefit from continued mentorship if James returns. His experience provides valuable guidance for developing stars like Doncic.
Fan and League Perspectives
Lakers fans have grown accustomed to James’ presence and leadership. His potential departure would mark the end of a significant era in franchise history.
League observers view James as a transformative figure whose decisions ripple across the NBA landscape. His choice will generate substantial discussion and analysis.
The situation highlights the evolving nature of player-team relationships in modern professional basketball. Loyalty, business considerations and competitive opportunities intersect in complex ways.
As negotiations continue, both sides maintain professional discretion. The outcome will shape the Lakers’ direction and James’ legacy in his later career stages.
The coming days and weeks may bring clarity to James’ future. Until then, speculation and analysis will continue surrounding one of the NBA’s most significant storylines.
1456 ET – Oil futures fall to their lowest level since the start of the U.S.-Iran conflict as more oil shipments make it out of the Persian Gulf. Signs are that production and exports will return much faster than had been thought during the war, Mizuho’s Robert Yawger says in a note. “Once storage draws down, oil producers can ramp up production and return to business as usual” as long as the U.S. and Iran reach an agreement in the 60-day negotiation period that keeps Strait of Hormuz open. Yawger expects the Trump administration would extend the negotiating period rather than go back on the offensive in mid-August, “just two-and-a-half months away from the mid-term elections, where affordability will be a major issue.” WTI settles down 3.9% at $70.34 a barrel and front-month Brent falls 4.3% to $73.74. (anthony.harrup@wsj.com)
Oil Market Shrugs Off Large U.S. Crude Stock Draw
1219 ET – Oil futures are falling as euphoria over the return of ships through the Strait of Hormuz outweighs concerns about falling U.S. inventories. The EIA reported a larger-than-expected 6.1 million barrel drop in commercial crude stocks for last week, a ninth straight draw. “Short-term we have major drawdowns in inventories, there’s a lot of disruption in the market, and the exact short-term trajectory is difficult to see,” says TradeStation’s David Russell. But the intermediate to long-term outlook is more bearish for prices than the market seems to appreciate with OPEC lifting production and Venezuela’s return to the market, he says. “There’s a flood of oil that’s coming and everybody knows it.” WTI is off 3.8% and most active Brent is down 3.5%. (anthony.harrup@wsj.com)
Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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The drug maker is undergoing a structural shift towards higher-value segments, with CDMO contributing over 30% to total revenue, up from 13% six years ago. This share is expected to reach 50% by FY30. The company has reduced dependence on the traditional segment of antiretroviral (ARV) therapies, with their contribution declining to about 41% from 67%.
AgenciesGuidance for ₹3,000-cr capex reinforces co’s long-term growth play
The CDMO segment grew 36% year-on-year to ₹2,080 crore in FY26, driven by late-stage pipeline progress, higher commercialisation of novel molecules, and strong outsourcing demand from global pharma players. Laurus is also expanding into non-pharma segments such as crop science and animal health. From a current base of about ₹150 crore, Motilal Oswal Financial Services (MOFSL) expects these segments to scale beyond ₹1,000 crore over time. The brokerage highlighted that CDMO growth has been supported by both development projects and commercialised molecules, and expects the segment to maintain momentum, projecting a 22% annual growth over FY26-28.
The operating margin before depreciation and amortisation (Ebitda margin) expanded 670 basis points year-on-year to 26.8%, driven by higher operating leverage. While the company expects to sustain margin at current levels, its trend will depend on the extent of volatility in raw material prices.
The company has outlined capital expenditure of ₹3,000 crore over the next two years, with over 90% allocation towards expanding mid and large-scale manufacturing capacities. Its key projects include greenfield Unit 7 facility with over 2,000 cubic meters of reactor capacity and a second commercial block slated for validation by the September 2026 quarter, alongside investments in animal health, fermentation and a formulation facility.
MOFSL has maintained a ‘BUY’ rating on the stock and raised earnings estimates for FY27 by 8% and for FY28 by 6% citing stronger CDMO traction, steady growth in ARV and non-ARV segments, continued operating leverage and ongoing capacity expansion. The stock closed 0.2% lower at ₹1,450.6 on Thursday from the previous day’s close on the BSE.
India’s largest commodity exchange, the Multi-Commodity Exchange of India (MCX), is closed for the first session (9 am to 5 pm) on Friday. Trading will resume in the evening session between 5 pm and 11:30 pm, as per its website. The National Commodity & Derivatives Exchange Limited (NCDEX), meanwhile, is closed for the entire day.
Upcoming market holidays
In total, 16 stock market holidays were scheduled for 2026, of which nine have already passed. April saw two holidays – April 3 (Good Friday) and April 14 (Dr. B.R. Ambedkar Jayanti), while markets were also closed on May 1 on account of Maharashtra Day and May 28 for Bakri Id.After today’s market holiday, the BSE and NSE will next be closed on September 14 for Ganesh Chaturthi, followed by October 2 (Mahatma Gandhi Jayanti), October 20 (Dussehra), November 10 (Diwali-Balipratipada), November 24 (Guru Nanak Jayanti), and December 25 (Christmas).
Check list of upcoming seven market holidays, including today.
Muharram is the first month of the Islamic calendar and is based on the lunar cycle, so dates may differ between countries depending on when the new moon is sighted. In India, the datefor Muharram 2026 is Friday, June 26, 2026. This will give a three-day weekend to many.As the first month of the Islamic Hijri calendar, Muharram signifies the beginning of the Islamic New Year. Derived from the Arabic word meaning “forbidden,” Muharram is one of the four sacred months in Islam during which warfare is traditionally prohibited. It carries profound religious and historical significance throughout the Muslim communities of the world. For Shia Muslims, Muharram is particularly marked by grief and remembrance, especially on the day of Ashura, the 10th day of Muharram.
Also read: Vodafone Idea shares rally 80% in less than 3 months. Time to buy or avoid?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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