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Polestar Confirms Plans to go Public in $20 Billion SPAC Deal
Luxury EV manufacturer Polestar has confirmed it will be going public via a merger with a special purpose acquisition company (SPAC) that sees the manufacturer valued at $20 billion.
Polestar, which is currently owned by Volvo and China’s Geely, recently raised $550 million in April and announced plans to expand its lineup to include the Polestar 3, an SUV.
Gores Guggenheim was founded by Alec Gores. The deal with Gores Guggenheim implies an enterprise value of approximately $20 billion.
Polestar would also receive an additional $250 million investment as part of the deal. The deal would allow Polestar to significantly expand its manufacturing efforts, especially as it plans to create the new Polestar 3 in the United States.
Existing Polestar investors include Volvo Car Group and affiliates of Geely Chairman Eric Li, and actor and activist Leonardo DiCaprio.
Thomas Ingenlath, Chief Executive Officer of Polestar, says: “This is a really exciting time for Polestar. With two award-winning cars on the road today in 14 active markets across three continents, we seek to expand to 30 markets by 2023. We are thrilled about the targeted addition of three new premium electric cars to our line-up by 2024, starting with our first SUV expected in 2022. In Alec and the Gores Guggenheim team, we have found a partner with an impressive track record of bringing leading companies to the public markets.”
He adds: “The proposed business combination and listing position Polestar as a financially strong, future proof, global electric car company. It will enable us to accelerate our growth, strategy and most importantly, our mission towards sustainable mobility.”
The company is also trying to improve its market presence and brand recognition. While well regarded by those in the industry, Polestar doesn’t have the broader brand appeal of Tesla, for example.
The company announced plans earlier this year to expand its retail presence into 18 countries – some way behind Elon Musk’s EV behemoth.