Polestar and Gores Guggenheim announced the completion of the deal on June 23, saying that the combined company will retain the Polestar name and will commence trading on the Nasdaq under the new ticker symbol “PSNY” on June 24, according to a press release.
“Listing on the Nasdaq is an incredibly proud moment for Polestar. We set out to create an outstanding new EV brand with the mission to accelerate the shift towards sustainable mobility,” Thomas Ingenlath, CEO of Polestar, said in the release. “With 55,000 cars on the road today and global recognition as made evident by over 100 awards, we have built a strong foundation for future growth. We are now expanding our product range with three new premium electric models, including two SUVs, by 2024. The first, Polestar 3, a full-size electric SUV, will launch in October 2022 and sets a new standard in this high margin, premium segment.”
Polestar has raised approximately $890 million gross proceeds, according to the release.
According to Seeking Alpha, given the current market climate, the upcoming GGPI-Polestar merger “might not experience as generous valuation premiums as those awarded by the market to its EV peers immediately post-close during the bull rally over the last two years.”
At $10.99 a share, Polestar’s market capitalization is about $23 billion, based on the 2.1 billion shares that are outstanding now, Barron’s reported.
CNBC noted that most SPAC mergers with EV companies haven’t been successful for investors. “Even the relatively more successful cases of Lucid Group, Fisker, and Nikola are currently trading 67%, 69%, and 92% below their post-merger highs, respectively.”
And EV company Rivian, which went public via a traditional initial public offering in November, is also having a hard time, as GOBankingRates previously reported. In a June 6 letter to shareholders, CEO RJ Scaringe acknowledged that “the journey ahead won’t be easy” but added that the company continues “to grow demand with a backlog of over 90,000 R1 preorders and Amazon’s initial order of 100,000 EDVs [electric delivery vehicles].” Shares of Rivian are down 71.3% year-to-date.
Earlier this month, Polestar announced the launch of its new Polestar 3, which will debut in October 2022. Polestar 3 is the company’s first electric performance SUV, Rivian said in a press release at the time, adding that it plans to launch a new car every year for the next three years and aims to increase its presence to at least 30 global markets by the end of 2023.
In April, Polestar announced Hertz would buy 65,000 of its electric vehicles over five years. Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia, the company said in a press release at the time.
Existing Polestar investors include Volvo Car Group, affiliates of Geely Chairman Eric Li and actor Leonardo DiCaprio, among other, according to a document filed with the Securies and Exchange Commission.
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