The market in SPACs has cooled, but Polestar has the network and the knowledge
Polestar, the sub-brand of electric vehicles From Volvo and Geely launched last week on the Nasdaq with a valuation of $20 billion, the PSNY has not earned the dollar by taking the traditional path toward an IPO.
With the bell ringing, Polestar became the latest electric car maker to speed up to the stock exchange by merging with a Special Purpose Acquisition Company, or SPAC, before it became profitable.
Being sponsored by Volvo gives Polestar a head start on typical electric vehicles, although its production targets can prove challenging given its relative size when compared to other SPAC’d EV companies recently.
The merger with blank check company Gores Guggenheim raised nearly $890 million for Polestar, which will use the money to fund an aggressive three-year growth plan. But so far, despite her enormous resources as a child of a multinational group, her stock has remained largely stagnant. It debuted at $10 a share and jumped to $13 after the SPAC merger was completed on June 24, but was trading Wednesday morning at about $9.70 a share.