A major announcement is expected at any time.
Big changes are afoot for Polestar if the latest report is to be believed. Reuters claims the Swedish all-electric automaker is set to go public with a $20 billion valuation with Gores Guggenheim, a blank check firm. We're looking at yet another Special Purpose Acquisition Company (SPAC) merger as opposed to a traditional IPO.
Neither the automaker nor its parent companies, China's Geely and Volvo, have commented on the report. Inside sources, however, are saying a deal is imminent and could be announced at any time, perhaps even later today (Monday).
Last spring, Polestar raised $550 million during its first-ever funding round and in July, Volvo increased its stake to 49.5 percent. That move made complete sense because both brands are already very closely aligned.
The Polestar 3 SUV, due in the second half of 2022, will share a platform with future all-electric Volvos, including the next XC90 and XC60. Volvo currently has two EVs on sale, the XC40 Recharge and C40 Recharge. Polestar 3 production will take place at Volvo's factory in South Carolina. Meanwhile, the Polestar 2 is built in China and it appears that won't change. A second sedan, slated to be called Precept, is due before 2025.
Assuming all goes well, Polestar's IPO will raise much-needed funds that'll likely be invested in R&D, specifically new battery technologies and autonomous driving systems. Polestar is one of the very few electric-only brands right now. Several mainstream OEMs, including Volvo, GM, and Jaguar, have already committed to all-electric vehicle futures but still sell combustion-engined models.
Polestar's only gas-engined vehicle was the limited edition and now-discontinued Polestar 1 grand tourer. That stunning coupe utilized a plug-in hybrid powertrain. The company said from the get-go that the coupe would be its only model to have a gas engine. We'll hopefully have more details regarding Polestar's future very soon.