Volvo’s Polestar is going public via SPAC – with a valuation of around £14.5bn – as it plans three new electric models in the next three years.
It’s only four years since Polestar was hived off from Volvo to create an independent company to deliver performance electric cars, despite which it’s going public before its former parent via a SPAC (reverse takeover) with a valuation of £14.5bn and will be listed on Nasdaq as PSNY.
Volvo will be throwing around £440 million into the new venture for a 50 per cent stake and the Gores Guggenheim SPAC (the vehicle for the deal) around £585 million, with a further £182 million raised through financing.
It all sounds huge for a business that only flogged 10,000 cars in the last year, but Polestar has big plans for the next year to justify its valuation and is aiming for 290,000 sales by 2025.
The promise is for three new EV models to add to the Polestar 2 (and the now-defunct Polestar 1), with the Polestar 3 up next year as a Polestar take on the next-gen Volvo XC90 underpinnings (but with more power), a sleek saloon based on the Precept Concept and what looks like a Coupe SUV in the mix too, judging by the photo Polestar released (above).
Thomas Ingenlath, CEO Polestar, said:
We are thrilled about the targeted addition of three new premium electric cars to our line-up by 2024, starting with our first SUV expected in 2022.
The proposed business combination and listing position Polestar as a financially strong, future proof, global electric car company. It will enable us to accelerate our growth, strategy and most importantly, our mission towards sustainable mobility.