Saturday, November 26, 2022
News Polestar to go Public in Order to Help Expansion

Polestar to go Public in Order to Help Expansion

Polestar will go public to increase its chance of reaching its ambitious sales goals

  • The company has been co-owned by Volvo and Geely since its shift to electric vehicles in 2019

  • The automaker will merge with Gores Guggenheim and Guggenheim capital

  • The resulting company has been valued at $20 billion (USD), twice the value of the much bigger Renault Group

Polestar, the electrified division of Volvo and Geely, is looking to expand its operations and become a more established automaker by launching new models. To help with this goal, the company will be going public.

By merging with Gores Guggenheim, a special purpose acquisition company, and Guggenheim capital, a private equity investor, (both backed by American billionaire Alec Gores), Polestar hopes to be able to increase its vehicle sales from 10,000 in 2020 to 300,000 in 2025, as well as enter 16 new markets (Polestar is currently present in 14 countries).

This merger would give Polestar a valuation of $20 billion (USD), which is twice as much as the Renault Group, even if the latter sold over 2.8 million vehicles in 2020.

As a result of the merger, Polestar would have access to $800 million from Gores Guggenheim in addition to $250 million from other investors to develop new models in the coming years.

Currently, the automaker only sells the Polestar 2 electric sedan, since the Polestar 1 flagship hybrid coupe has been disontinued earlier this year. The Polestar 3 large electric SUV is set to be introduced next year and the company is reportedly working on a production version of the precept electric sedan. A smaller SUV is also planned.

Other companies specialised in electric vehicles have already gone public and have achieved high valuation despite having yet to sell a car, but Polestar is the first one to have an actual product that is already on sale to take this route.

Polestar’s former parent company, Volvo, is also looking into going public shortly to increase its funding.

Trending Now

Volkswagen Says its Autonomous Vehicles will be Mainstream by the End of the Decade

The company aims to have autonomous vehicles everywhere by 2030. Until then, it wants to implement Robotaxis in Hamburg in 2025. Other automakers...

Mercedes-Benz Extra Power Subscription Won’t be Offered in Europe: Report

Report cites legal issues behind move Subscription power boost to cost $1,200/year Mercedes-Benz USA is getting ready to let you add power to your...

Ford Recalls 634,000 Bronco Sport, Escape Models over Fire Risk

Cracked injectors could lead to fire Fix involves new software, drain tube Ford is recalling more than 634,000 Bronco Sport and Ford Escape models...

Is this Vision Study Model the next Mazda MX-5?

This Mazda Vision Study really looks like the next generation of the popular roadster The butterfly doors probably won't make it to production ...

Nissan is Working on a New Platform of the R36 GT-R

The next generation of the GT-R could get a hybrid powertrain, depending on market needs. This model will use an entirely new platform,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.