Electric car maker Polestar lands $20bn deal to go public
Swedish Polestar announces plans to go public via SPAC merger with Gores Guggenheim Inc.
Swedish electric vehicle maker Polestar has announced plans to go public via a SPAC merger with Gores Guggenheim, Inc.
The transaction includes $800m in cash from Gores Guggenheim at a $20bn enterprise valuation.
The merger will form a new public company named Polestar Automotive Holding UK Limited and is expected to be listed on Nasdaq under the ticker symbol “PSNY”, Polestar confirmed in a statement.
Polestars investors include Volvo Car Group and affiliates of Geely Chairman Eric Li and actor Leonardo DiCaprio, among others.
Setting new standards
Europe has emerged as the second-largest electric vehicle market in the world by volume, behind China and ahead of the United States, according to the ICCT.
The demand for electric vehicles has seen a sharp increase worldwide in a bid to combat climate change and emissions within the transportation sector. According to The Guardian, global sales of electric cars hit a record high in 2020, with a 43% increase to more than three million sales, despite overall car sales decreasing by a fifth during the coronavirus pandemic.
Electric vehicles also provide a more sustainable approach to vehicle production with lower production costs and hybrid charging infrastructures.
Founded in 2017 by Volvo Cars and Zhejiang Geely Holding, the Nasdaq-bound business plans to expand its global distribution footprint to 30 markets by 2023. It has delivered approximately 10,000 vehicles in 2020 and expects to sell approximately 290,000 vehicles a year by 2025.
Thomas Ingenlath, CEO of Polestar, commented on the announcement: “This is a really exciting time for Polestar. 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.
“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,” Ingenlath added.