Polestar, a Swedish electric car manufacturer, is planning to go public.
Polestar, owned by Volvo Cars of Sweden and Geely of China, announced Monday that it intends to go public in a stock market debut that could value it at around $20 billion (17 billion euros).
The funds will be used to “help support considerable investment in the expansion of its products, operations, and markets to create a leading firm in the fast increasing global luxury electric car market,” according to Polestar, a European competitor to Tesla.
Despite the fact that Polestar, whose shareholders include US actor Leonardo DiCaprio, has only manufactured two vehicles since its founding in 2017, its market capitalization would put it just below Nissan and ahead of Renault and Subaru.
With a market capitalization of nearly $750 billion, Tesla is the world’s most valuable carmaker, more than three times that of Toyota or Volkswagen, both of which sell far more vehicles.
The listing will be completed by joining Polestar with Gores Guggenheim, a special purpose acquisition company (SPAC) formed by US investment companies The Gores Group and Guggenheim Capital, and is slated to take place in the first half of 2022.
Polestar Automotive Holding UK Limited will be the name of the newly established corporation.
Polestar, which was founded four years ago by Volvo and Geely, sold only 10,000 vehicles in 2020, but is aiming for annual unit sales of roughly 290,000 by 2025.
The Polestar 2 is the current model, and the Polestar 3 will be released next year.
According to the firm, the $20 billion market capitalization is three times the estimated revenue in 2023 and 1.5 times the expected sales in 2024.
In comparison, Lucid Motors, a US start-up, has a market capitalization of $40 billion, while Xpeng, a Chinese company, has a market capitalization of roughly $30 billion.
The company is the Swedish flagship in the electric car market, together with battery supplier Northvolt.
While there have been a slew of new players in the electric vehicle market recently, some have had a rocky start.
Last year, Chinese automaker Li Auto raised $1.1 billion on the Nasdaq, but its stock price plummeted in Hong Kong last month as a result of Beijing’s tech regulatory crackdowns.
Lordstown Motors, a US electric pickup truck manufacturer, revealed in June that it lacked the financial resources to create a commercial vehicle.
Days later, the company’s general director resigned, citing production issues as well as charges that he and other officials had given false information concerning pre-orders.
“It’s far more difficult. Brief News from Washington Newsday.