Watch Out Tesla, New EV Company Polestar Announces It’s Going Public

Polestar, an EV firm that originally spun out of Volvo, announced it is going public via SPAC to rival Tesla in the competitive space.

Sept. 28, 2021

The Special Purpose Acquisition Company (SPAC) explosion is continuing and the latest electric vehicle (EV) company to go public via this form is Polestar. Polestar is following the likes of Faraday Future, Lucid Motors, and Canoo by taking the popular SPAC route which have all made their debut over the last year and helped billions flow into the EV industry. 

On Monday, the firm declared that it is going public with a reverse merger with Gores Guggenheim (NASDAQ: GGPI). 

What is Polestar? 

Polestar is a Swedish all-electric brand that was established in 1996 that was acquired in 2015 by Volvo. The deal values Polestar at $20 billion. 

Polestar’s SPAC

Upon completion of the merger, Polestar will become a new public company that will be named Polestar Automotive Holding UK Limited. Polestar will be listed on Nasdaq under the ticker symbol ‘PSNY’

Gores Guggenheim is set to contribute $800 million in cash for the deal. In addition, the two are creating a $250 million PIPE financing deal for more than $1 billion in liquidity for after completion of the deal.

Will Polestar’s SPAC be a good investment? 

Polestar delivered 10,000 electric vehicles in 2020 and already has significant operations in several markets. According to CEO, Thomas Ingenlath, the company has two ‘award-winning’ models on the market in 14 markets in three continents. Polestar has big ambitions though, and hopes to expand it to 30 markets by 2023. To do this, the firm is targeting adding three new premium electric cars by 2024.

However, as it is not yet a public company, Polestar’s financial situation is unknown.

The EV market is very competitive and if you want to invest in this sector, it might be best to choose a company that is already established in the industry. With any new public listing, we always recommend you wait until the company has released at least three earnings reports before taking the plunge and buying shares.

SPACs can be risky forms of investment, instead, use our list of market-beating stocks to accumulate wealth. Start your free access now.