Polestar Recalls Nearly 28,000 Vehicles In US Over Faulty Rear Camera Image Display: Retail’s Disappointed

Polestar (PSNY) is recalling 27,816 vehicles in the U.S., citing issues with rear camera image display, U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA) said on Friday.

The regulator said the rearview camera image may not display when the vehicle is in reverse, posing risks of a crash. Customers may experience a “Camera is temporarily unavailable” message instead of the rear view when the gear selector is in reverse.

As for a fix, the company’s dealers will release an additional software update, free of cost to the customer.

The recall population includes model year 2021-2025 Polestar 2 liftback vehicles manufactured between July 2020 and November 2024. The Polestar 2, made in China, is no longer being produced for the U.S. market.

Earlier this week, Polestar paused its full-year financial guidance, citing uncertainty around international tariffs and government regulations impacting its business and market dynamics. Polestar manufactures vehicles in the U.S. and China, making it prone to impact from Trump tariffs.  

However, the company continues to target compound annual retail sales volume growth of 30-35% from 2025 to 2027.

In the three months through the end of March, Polestar reported retail sales of an estimated 12,304 units, driven by a growing uptake of newer models and a transition to an active-selling model.

On Stocktwits, retail sentiment around Polestar has fallen from ‘neutral’ to ‘bearish’ in the last 24 hours, while message volume has fallen from ‘normal’ to ‘low’ levels.

PSNY stock is down by about 4% this year and by about 23% over the past 12 months.

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