Polestar is listed publicly under the “PSNY” logo, the latest example of an electric car maker going public through a merger with a Special Cause Acquisition Company (SPAC), as Polestar shares began trading on the Nasdaq a day after completing a merger with a blank check company (or SPAC) called Goris Guggenheim, and shares of the electric car company ended the day at $13, up 15.8% from their last close.
Polestar CEO Thomas Enginlath said the company will use the $890 million it raised from the deal to fund a three-year plan to build new vehicles with the larger goal of becoming a profitable company. Read more [Blockchain Payments Company Roxe Close to Huge SPAC Deal].
So far, most of the electric vehicle merger deals with SPAC have not been good from the investors’ point of view, despite the relatively successful experiences of companies such as Lucid, Fisker and Nicolas, are currently trading at 67%, 69% and 92% (respectively) levels above their pre-merger value.
On the other hand, we note that the electric truck maker Rivian, which listed its stock through a traditional initial public offering, is suffering from an 84% drop in its market value compared to its pre-IPO value. Read more [Ford Motors is Giving Up More Shares of Rivian], [Lucid Plans To Enter Europe Market This Year] and [Nikola’s Results Surprise Analysts in the First Quarter].
It is worth noting that Polestar has several advantages over its competitors, as Volvo Cars owns 48% of it and Polestar owns more than 55,000 vehicles on the roads in China, Europe and the United States, and the company operates an active plant in China with an assembly line expected to start operating later this year at the South Carolina plant it joint with Volvo. Read more [Polestar Merges With An Acquisition Company].