Polestar, the Swedish car manufacturer, recently announced it would go public in a deal with a special purpose acquisition company (SPAC) backed by Alec Gores and Guggenheim Partners. Polestar, which counts the Volvo Group and actor Leonardo DiCaprio among its backers, is valued at $20 billion in the suggested merger.
The goal of the merger is to secure over a billion dollars to bring three new electric vehicles to market over the next three years. In addition, Volvo will also invest up to $600 million in Polestar following the Gores Guggenheim deal.
Once the merger is completed, Polestar’s plan is to be listed on the Nasdaq stock market. In a press release, the company announced it expects the deal to close in the first half of 2022.
The same press release maintained that the company would remain headquartered in Sweden. However, the Polestar 3 will be manufactured in the US and will be a performance SUV.
Polestar is currently the closest competitor to Elon Musk’s Tesla, and once listed, could also be an important alternative for investors eager to enter the EV space.
And as experts indicate, differentiation will be the key to attract both buyers and investors for the two electric vehicle leaders.
Polestar was founded by Volvo and isn’t the first EV company to attempt a SPAC debut. At least 13 EV-related SPACS have been closed. That said, merely a few have such a vast infrastructure in place. Plus, Polestar has already proven it can produce a competitive electric vehicle.
The company is expecting 29,000 vehicle sales in 2021 and 290,000 by 2025. It’s currently available in 13 markets and plans to be active in 30 markets by 2023.