Polestar (PSNY)’s US Exit Just Showed Up in its Guidance
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Yahoo Finance
Vietnamese taxi operator GSM, backed by VinFast, is launching in the US and Europe to bolster its valuation ahead of a 2028 IPO. Meanwhile, Polestar has slashed its 2026 delivery forecast following US regulatory restrictions on Chinese-controlled vehicle software.
Strategic Expansion: GSM Targets Global Markets
Green and Smart Mobility (GSM), the Vietnamese electric taxi operator deeply connected to VinFast Auto Ltd. and founder Pham Nhat Vuong, has announced an ambitious international expansion strategy. As of September 3, 2026, the company plans to deploy its electric taxi fleet across the United States, Sweden, and the Netherlands by the end of this year. This move is part of a broader roadmap to penetrate additional European markets throughout 2027, signaling a significant push for global brand recognition.
The Path to a Hong Kong IPO
This aggressive geographic scaling is inextricably linked to GSM’s preparations for an initial public offering (IPO) in Hong Kong, currently slated for 2028. Financial advisers are reportedly eyeing a valuation of approximately $20 billion for the firm. By establishing a presence in mature Western markets, GSM intends to demonstrate its operational capability and scalability, which are critical metrics for institutional investors evaluating a high-valuation IPO in the current economic climate.
VinFast’s Mixed Global Outlook
While GSM pursues growth, its parent company, VinFast, faces a complex landscape. The same week as the GSM announcement, reports emerged that VinFast has suspended electric vehicle assembly plans in India and is currently contending with a US lawsuit regarding delays at a subsidized manufacturing facility. These hurdles highlight the difficulties of rapid international expansion, suggesting that while the ecosystem of VinFast-backed companies is growing, they are not immune to the logistical and legal pressures of the global automotive sector.
Competitive Headwinds: The Polestar Case
The volatility in the electric vehicle (EV) sector is further underscored by the recent performance of Polestar Automotive Holding UK PLC. On September 3, 2026, Polestar revised its full-year delivery forecast downward, citing significant fallout from being barred from selling its newer vehicles in the US. The company, which is backed by Geely, now expects only low-to-mid single-digit volume growth, a sharp decline from its previous double-digit projections.
Regulatory Impact on Automotive Software
The challenges faced by Polestar serve as a cautionary tale for any firm attempting to enter the US market. In June, the US Commerce Department denied Polestar authorization to sell 2027 model year vehicles due to regulations restricting Chinese-controlled vehicle software and data systems. With shares falling 16% in response to the lowered guidance and a second-quarter revenue drop of 8%, it is clear that regulatory compliance regarding software and data security has become a primary risk factor for global automakers.
Future Trends and Market Implications
Looking ahead, the divergence between GSM’s expansion and Polestar’s contraction illustrates the high-stakes environment for EV manufacturers. GSM’s success will likely depend on its ability to navigate the same regulatory scrutiny that has hampered competitors like Polestar. As the industry evolves, the intersection of national security, data sovereignty, and automotive manufacturing will continue to dictate which firms can successfully scale internationally and which will be forced to retreat from key markets.