AutoBeta(AutoBeta.net)09/28 Report--

On September 27, Volvo's electric car brand Polestar announced that it had agreed to list as SPAC, which will be listed through the merger of Gores Guggenheim, a special purpose acquisition company, and is expected to list on NASDAQ under the stock code "P". Volvo Cars said today it would invest up to $600 million in Swedish electric carmaker Polar Star. Volvo said it expects to hold nearly 50 per cent of the combined company after completing its additional investment in Polar Star.

Polar Star said in its statement that the merger listing would lay a solid foundation for its future development. Compared with other backdoor listed car start-ups, Polar Star already has a listed model and a production network of large car companies, and Polar Star believes it can better maintain its valuation. In addition, it will receive approximately $1.05 billion in revenue after launch, which will help Polar promote three new models by 2025.

According to relevant information, Polar Star was founded in 2017. It is a global high-performance electric vehicle brand jointly owned by Volvo Car Group and Zhejiang Geely Holding Group, focusing on automobile design and technology. Up to now, Polar Star has launched two models, Polar Star 1 and Polar Star 2, among which Polar Star 1 is a collection-class GT coupe with limited production of 1500 vehicles in the world, and the domestic price is as high as 1.45 million yuan. The latest version of Polar Star 2 is positioned more people-friendly, with a starting price of 252,800 yuan in China.

It is understood that on April 15 this year, Polar Star had received $550 million (about 3.55 billion yuan) in financing from long-term financial investors. On June 16, electric car brand Polar Star announced that its first all-electric SUV Polar Star 3 will be put into production in China and the United States, production of which will begin in 2022. On June 17, it was reported that Polar Star was actively seeking to go public to raise more funds to cope with the increasingly competitive electric vehicle market.

As for Polar Star, which has agreed to list in SPAC form, market sources say it could be valued at more than $20 billion (about Rmb129.2 billion) if it goes public smoothly. Earlier, Polar Star had announced its goal of increasing sales to 290,000 units by 2025, but in fact the market response of Polar Star was less than expected. According to relevant data, only 24 Polestar1 vehicles will be insured in 2020, while 342 Polestar2 vehicles will be insured in 2020. In the face of dismal sales volume, whether overseas listing can get rid of the fate of low sales volume remains to be verified by the market.

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