Volvo's luxury electric brand Polestar goes public

Released on 27.09. 2021

  • A logo from Volvo’s luxury electronics brand Polestar. Photo: Uli Deck
  • A Polestar Precept stands during the International Motor Show (IAA Mobility) in Munich. Photo: Matthias Balk

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Recently, various electric car developers went public through mergers with company shells – and then ran into problems. Polestar, the next listing candidate, is already selling cars.

Gothenburg (dpa) – The luxury electric brand Polestar is the next young car company that wants to go public quickly via a detour.

The company of the Swedish car maker Volvo and His Chinese mother Geely is merging with an already listed financial vehicle. Polestar will be involved in the transaction including debts with approximately 17 billion dollars (around 17 billion euros) valued, as those involved announced on Monday.

Polestar boss Ingenlath with big goals

From currently 14 countries worldwide, Polestar boss Thomas Ingenlath wants the business to 2023 to 30 markets. The car manufacturer plans to launch its first SUV in the coming year. Also 2023 and 2024 there should be a new model, Ingenlath said on the US broadcaster CNBC. To 10.000 vehicles delivered last year Polestar wants 2025 around 290.000 Sell the car.

For going public Nasdaq merges Polestar with a corporate shell called Gores Guggenheim, a so-called Spac (Special Purpose Acquisition Company). In the future, the merged company will operate under the name Polestar Automotive. The merger with Gores Guggenheim has yet to be approved.

Actor DiCaprio was probably also among investors

Polestar was 2017 was founded by the Swedish car manufacturer Volvo and the owner Geely. Volvo is providing another 09 million dollars in investment in the deal and is aiming for a share in 50 percent. According to media reports, there is also actor Leonardo DiCaprio among the Polestar investors Ingenlath. This year he set the goal of making car production at Polestar as sustainable as possible with the aim of using recycling as much as possible. The manager was a car designer for a long time, first at the Volkswagen Group and then at Volvo.

In the past few months, various electric car start-ups have gone public through Spac mergers. The biggest deal landed at Lucid Motors earlier this year, valued at 20 billion dollars. At the same time, some companies like Canoo, Lordstown Motors and Nikola got into rough waters after their Spac IPOs. Polestar differentiates from them, however, the close connection with an established car manufacturer and the fact that the company already sells series vehicles to consumers.

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