Polestar, the electric car company spun out of Volvo and now owned by China’s Geely, has confirmed it plans to roll out three new EV models as it prepares to join other EV start-ups with a $US20 billion ($A27 billion) public listing.
Polestar is following a number of other EV hopefuls – including Lucid, Faraday, and Canoo – in adopting the latest fashion of merging with a “special purpose acquisiton company” (SPAC) to achieve a public listing on the Nasdaq stock exchange.
Its deal is with Gores Guggenheim, a listed invement vehicle and will include an $US800 million injection from Gores Guggenheim and a further $US250 million from new investors, which will result in a market valuation of around $US20 billion.
Existing shareholders – mostly Geely, but also actor Leonardo di Caprio, and others – will retain 94 per cent of the listed company.
“The proposed business combination and listing position Polestar as a financially strong, future proof, global electric car company,” Thomas Ingenlath, the CEO of Polestar, said in a statement.
“It will enable us to accelerate our growth, strategy and most importantly, our mission towards sustainable mobility.”
Polestar currently has two cars in production – Polestar 1 and Polestar 2 – currently on roads across Europe, North America and Asia, but it plans another three EV models over the next three years, including its first SUV in 2022 and luxury versions that will take on the likes of Porsche and Mercedes.
It is already operating in 14 markets and expects to expand this to 30 markets by 2023, and will officially launch in Australia this week when it reveals local pricing and booking details for its Polestar 2 fastback electric car.
Alec Gores, the chairman and CEO of both the Gores Group and Gores Guggenheim described Polestar as a “stand-out” in the EV space.
“The Company is truly differentiated from others given its premier vehicles, attractive financial profile, strong track record of performance, and the fact that it already has cars on the road across the globe,” Gores said.
“I had the privilege of seeing the line-up of upcoming models, and the cars represent best-in-class innovation and industry-leading design that set the brand apart.”
Polestar delivered approximately 10,000 vehicles in 2020 and expects to sell approximately 290,000 vehicles per year by 2025, according to a company statement.