Swedish electric car maker Polestar goes public in $20 billion SPAC deal

Swedish electric car maker Polestar reached an agreement to go public via SPAC with Gores Guggenheim Inc., The SPAC deal would give Polestar a valuation of $20 billion.

The deal will be supported by cash proceeds of around $800 million from Gores Guggenheim, assuming no share redemptions by public stockholders of the blank-check firm. The deal also includes a private investment in public equity, of $250 million from top-tier institutional investors.

The announcement adds Polestar to a growing list of EV and EV-related companies to go public via SPAC deals over the last two years, some notable examples are Arrival, Nikola, EVgo, Proterra, Lucid Motors or Bird.

The EV maker’s offers two models so far – a hybrid performance car, the Polestar 1 and a fully electric Polestar 2 – they are currently available in Europe, North America and Asia.

After delivering  about 10,000 vehicles last year, the company expects to sell about 290,000 vehicles per year by 2025 and plans to launch three new models by 2024.

Polestar is aiming to create a highly transparent and traceable process from manufacturing, to sales and end-of-life that could eventually allow the company to create carbon neutral vehicles. The EV maker has announced plans to begin production of their SUV model in the United States in 2022. Going public would help them get to market quicker in the U.S and potentially compete with Tesla.