The market has cooled on SPACs, but Polestar has the network and know-how
Polestar, the EV subbrand from Volvo and Geely that launched last week on the Nasdaq at a $20 billion valuation, didn’t earn its $PSNY ticker by taking the traditional route toward an IPO.
With the ringing of the bell, Polestar became the latest EV maker to hurry to the stock exchange by merging with a special purpose acquisition company, or SPAC, before becoming profitable.
Being under Volvo’s aegis gives Polestar a head start over typical electric vehicle startups, though its production targets could prove challenging given their relative scale when compared to other recently SPAC’d EV companies.
The merger with blank-check company Gores Guggenheim raised roughly $890 million for Polestar, which will use the money to fund an aggressive three-year growth plan. But so far, despite its considerable resources as the child of a multinational conglomerate, its stock has largely stagnated. It debuted at $10 per share and jumped to $13 after the SPAC merger was completed on June 24, but was trading Wednesday morning around $9.70 per share.