Watch out, Elon Musk, Polestar is coming for you. The Swedish electric car maker is preparing to go public through a SPAC deal with Gores Guggenheim (CGPI). The two companies get to this deal in very different situations. CGPI is still fresh from raising $800m in a March IPO, while Polestar faces a troubling time after recalling all vehicles last year due to faulty components. Gores rose 2.4% in premarket trading.
The SPAC deal will also raise $250m, which Polestar will use to capitalize on the demand for electric vehicles by innovating its current product offering. The agreement, valued at $21b, will represent one of the largest SPAC deals made in recent history. After it goes through, the new company will be listed on the Nasdaq, registered as Polesar Automotive Holding UK Limited (PSNY).
why it matters
Polestar joins a number of other public electric vehicle startups such as Lucid Motors, Nio, and XPeng. For a company that wishes to compete with Tesla (TSLA), this is a must move (welcome to the big boys club, Polestar).