Polestar to Go Public: $20 Billion SPAC Deal

Polestar to Become Publicly Traded via SPAC Merger

Polestar, the Swedish manufacturer of electric vehicles, has finalized an agreement to become a publicly listed company through a special purpose acquisition company (SPAC) merger with Gores Guggenheim Inc.

Deal Valuation and Company Structure

The financial terms of the deal value Polestar at $20 billion. Following the completion of the merger, the resulting entity will operate under the name Polestar Automotive Holding UK Limited.

The company is anticipated to be listed on the Nasdaq stock exchange, trading under the ticker symbol “PSNY.”

Ownership and Parent Company

While Polestar functions as Volvo Car Group’s electric performance division, both brands are ultimately owned by Zhejiang Geely Holding Group Co., a Chinese automotive conglomerate.

Trend of EV Companies Going Public via SPACs

This move positions Polestar among a growing number of electric vehicle and related companies that have chosen to enter the public market through SPAC mergers over the past two years.

Notable examples include Arrival, Nikola, EVgo, Proterra, Lucid Motors, and Bird.

Sustainability and Manufacturing Goals

Polestar is dedicated to establishing a comprehensive life cycle assessment framework for the electric vehicle manufacturing sector.

The company’s objective is to achieve complete transparency and traceability throughout the entire process – from manufacturing and sales to the vehicle’s end-of-life – enabling the creation of truly carbon-neutral vehicles.

In June, Polestar announced plans to manufacture its first SUV, the Polestar 3, within the United States, with global production slated to commence in 2022.

Funding and Market Competition

Establishing a manufacturing facility and sourcing high-quality components in the U.S. represents a significant financial undertaking.

Becoming a publicly traded company may provide Polestar with the necessary capital to realize its ambitious goals.

The deal is also expected to accelerate Polestar’s entry into the U.S. market, allowing it to more effectively compete with industry leader Tesla.

Polestar has positioned its Polestar 2 sedan as a superior alternative to Tesla’s offerings, but requires substantial investment to build brand recognition and consumer trust.

It’s worth noting that Polestar previously issued a recall of all its vehicles globally due to component defects last year.

SPAC Details

Gores Guggenheim Inc. successfully raised $800 million through an initial public offering (IPO) in March, and discussions with Polestar were reported by Bloomberg as early as July.