Share Pole star It made its debut in the public market on Friday with the ticker “PSNY” and was released as the latest electric vehicle manufacturer through a merger with a special acquisition company (SPAC).
Polestar shares began trading on the Nasdaq exchange the day after the merger with SPAC Gores Guggenheim was completed. EV makers’ stocks closed at $ 13.00, up 15.8% from Thursday’s SPAC final closing.
Polestar CEO Thomas Ingenlath said the $ 890 million raised in the deal will be used to fund a three-year plan to build a new car and ultimately make a profit.
However, Mr. Ingenlath said that Polestar, which started as a joint venture between Swedish Volvo Car and Chinese automobile giant Geely in 2017, Progress beyond the startup state..
In a recent interview, Ingenras said, “We will be public as a successful business to run and not to raise money to build a business.” “The next three years will be super-rapid growth, and the company is preparing for it in its product portfolio.”
SPAC transactions have become a more common way for businesses to publish in recent years. The required disclosure is easier than a traditional initial public offering. Unlike traditional IPOs, companies participating in the SPAC merger can provide investors with a future outlook. This helps to justify a high valuation. However, there is no guarantee that those predictions will come true.
So far, most SPAC mergers with electric vehicle companies have not worked well for investors.Even in the relatively successful case of Lucid Group, Fisker When Nicola It is currently 67%, 69% and 92% below the post-merger highs, respectively. EV truck maker RivianIt was released in a conventional IPO, but it is also struggling. Its share is 84% down from its post-IPO highs.
However, Polestar has some advantages over its competitors. Volvo Cars still owns 48% of the company and Polestar already has more than 55,000 vehicles in China, Europe and the United States. The factory is in operation in China, and the assembly line is scheduled to start production later this year. The South Carolina factory is shared with Volvo.
Over the next three years, the company plans to add three vehicles to its current model, the compact Polestar 2 crossover made in China. Added is the large SUV Polestar 3. Medium Crossover, Polestar 4; The large sedan Polestar 5 is intended to serve as the brand’s flagship vehicle.
Everything is completely electric and everything is available in the US, Europe and China. Polestar will manufacture vehicles in all three regions. By the end of 2025, Ingenlath predicts that Polestar’s three-year roadmap will bring its annual sales to approximately 290,000 units.
Ingenlath said he may need to raise more cash before Polestar can make a profit. This is a milestone that is expected to be reached by 2025.
So far, according to Ingenlath, the company’s plans are on track. Since the beginning of this year, Polestar 2 orders have exceeded 32,000 and these orders are from 25 countries. Polestar has also received an order from car rental giant Hertz. 65,000 vehicles over the next 5 yearsThe deal, Ingenlath said, is primarily aimed at giving consumers the opportunity to try out the company’s EV.
Polestar plans to operate its sales and service networks in 30 countries by the end of next year, but Ingenlath says the company is likely to reach that milestone sooner.
