Electric car manufacturer Polestar is going public by merging with a blank check company, a so-called spac. The carmaker confirmed this on Monday, after earlier reports in The Wall Street Journal. This creates a new publicly traded company with an estimated value of 20 billion dollars (17.1 billion euros) – three times the expected turnover in 2023. The former startup is the umpteenth company involved in electric cars that is floated on the stock exchange. goes.
The Gothenburg-based automaker – a company of Volvo and its Chinese parent company Geely – will soon be acquired by Gores Guggenheim. That is a spac (special purpose acquisition company) of the American billionaire Alec Gores and investment bank Guggenheim Capital. This stock exchange shell has been listed on the Nasdaq since March.
Through the deal, Polestar – in which actor Leonardo DiCaprio, among others, invested – will receive the 800 million dollars (683.3 million euros) that Cores Capital previously raised from investors. It wants to invest this money in the development of new models.
A spac is usually founded by one or more well-known business people. They bring the ‘investment vehicle’ to the stock exchange and with the money they collect in this way, they buy a real company within one or two years, which ends up on the stock exchange.
With the IPO, Polestar is positioning itself as a serious competitor for Tesla, says stock market expert Nico Inberg van DeShareholder.nl. “In this way, they get a lot of extra money in one go to invest in international brand awareness, for example with expensive advertising campaigns.” Founded in 2017, Polestar is active in 14 countries. The aim is to have 30 by 2023.
The advantage of a spac is that Polestar is now listed on the stock exchange in one go. “Normally you have to hire an army of expensive lawyers for the paperwork, time-consuming hassle. But because it will be shrouded in such an empty exhibition shell, that is not necessary now,” says Inberg.
Too rosy expectations
In particular, many companies involved in electric cars have gone public via a spac in recent years, such as car manufacturers Lucid and Lordstown, or battery manufacturers such as QuantumScape. Investors are looking for ways to make a return on their money and do not want to miss out on the new Tesla.
Spac hype was at its peak in the first quarter of this year, but since the third quarter, spac mergers have been quiet and prices have fallen. The companies involved in electric cars and who went public via a spac turned out not to be able to live up to expectations: production targets were not met, and there were legal problems. Financial Times even calls the entire spac market ‘acidified’.
However, according to Mark Stone of Cores Group – also part of the spac – Polestar differs from other hyped electric transport companies in that it already produces and sells cars in multiple countries. „The other players still give PowerPoint presentations about their vision and need a huge amount of capital [om auto’s te produceren]Stone said to Financial Times. “Polestar is already on the market.”
Polestar cars are currently produced in Chengdu, China, but it has plans for new plants in Belgium and the US state of South Carolina. “Polestar is connected to Volvo and can therefore use its infrastructure,” says Inberg. “You see, for example, that his electric cars are bought in Volvo garages.”
The first Polestar model was launched in 2019. Last year, almost three thousand copies of the Polestar 2, the current model, were sold in the Netherlands and up to and including August of this year there were more than six hundred. In the Netherlands, a copy costs around 46,000 euros.
A version of this article also appeared in NRC on the morning of September 28, 2021
Polestar is also listed on the stock exchange via ‘spac’
Source link Polestar is also listed on the stock exchange via ‘spac’