Tesla's competitor ahead of the IPO: A potential SPAC deal for Polestar

It is likely that the following electronic car manufacturer will be listed on the stock exchange. According to media reports, Polestar is in merger talks with the shell company Gores Guggenheim. The deal would value the Swedish company, backed by two prominent automakers, at a multiple of $1 billion.

According to a report by Bloomberg Polestar and SPAC Gores Guggenheim are negotiating the acquisition. So the room value is $25 billion for the electric car maker. In its last over-the-counter funding round in April of this year, the company was valued at just $7 billion.

After the talks became known, shares of Gores Guggenheim rose more than four percent.

Joris Guggenheim

Polestar is owned by Volvo and its Chinese owner is Geely. The company has been producing its first all-electric car, the Polestar 2, since early summer 2020, and is therefore in direct competition with the Tesla Model 3.

It will be some time before the Swedes advance in the dimensions of the pioneer of electric cars. Management announced a goal to sell 50,000 Polestar 2 models annually over the next two to three years. Tesla launched nearly 31,000 Model 3s in May 2021 alone.

In June, its subsidiary Volvo announced that it will begin production of the Elektor Polestar 3 SUV in the second half of 2022.

The merger with Gores Guggenheim has not yet been proposed and could eventually be cancelled. SHAREHOLDER stays connected.

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