The Swedish electric car manufacturer Polestar is on the verge of a SPAC merger with the investment company Gores Guggenheim, which wants to bring in 250 million US dollars for a planned IPO. That reports the Wall Street Journal. The market value of Polestars would be put at $ 21 billion through this agreement.
The negotiations between Polestar and Gores Guggenheim are on laut Wall Street Journal well advanced and could lead to a conclusion on Monday if the talks are not broken off at short notice.
Merger with SPAC for IPO
SPAC stands for “Special Purpose Acquisition Company” and refers to companies that raise capital in order to later merge with or take over a private company. Through a SPAC merger with Gores Guggenheim, Polestar would be listed on the stock exchange and not go public.
A SPAC merger recently helped Polestar competitor and luxury electric car startup Lucid Motors to go public. Lucid received around $ 4.5 billion in fresh capital to be invested in expanding the factories.
Swedish Polestar electric cars from China
Polestar is a joint venture between the automobile manufacturer Volvo Car Corporation and Geely Automobile Holdings from China. The brand focuses on all-electric propulsion, while Volvo itself still offers plug-in hybrids. From 2030, however, Volvo only wants to sell purely electric cars. A battery giant factory with VW’s battery partner Northvolt is to supply Volvo with the power cells it needs.
Polestar itself emerged from the Volvo tuning department. After the Polestar 1 introduced in 2017 as a hybrid vehicle, the company announced the purely battery-electric Polestar 2 two years later. The Swedes see themselves as a Tesla competitor. The vehicles are currently manufactured in China, but the upcoming Polestar 3 is to be assembled in a Volvo factory in the US state of South Carolina.