Polestar, the electric car company backed by Volvo and Geely, has opened the door to going public via a blank cheque vehicle, as it wants additional firepower to fight in a global industry that is becoming increasingly competitive.
The company, which raised $550 million from Chinese investors in April, intends to raise more money as it prepares to manufacture automobiles in the United States for the first time.
A standard initial public offering or a special purpose acquisition company might be used to raise funds.
Polestar CEO Thomas Ingenlath said, “I would not say no to an IPO or a Spac, but it’s definitely not decided when that will happen.” He said that the company was looking for “long-term investors.”
Over the last 18 months, electric car start-ups have been among the greatest beneficiaries of the Spac boom, as they attempted to entice investors with promises about their technology and the size of their prospective markets.
However, this has resulted in an overabundance of listings, and the flaws of numerous firms have been exposed as a result of their participation in the Spac rush.
Polestar has access to the perks that larger carmakers have, according to Inglenath, because of Volvo Cars and its parent company Geely’s support.
Next year, Volvo will start producing an electric sport utility vehicle at its plant in South Carolina. Polestar produces its flagship model, the Polestar 2, in Chengdu, China, but suffers high taxes when exporting to the United States.
The Polestar 3, which will be equivalent in size to a Volvo XC90 SUV and go on sale late next year, will be manufactured in both the United States and China, allowing it to dodge import duties.
Polestar predicts considerable growth in the electric car industry in the United States and has built showrooms around the country. According to Inglenath, their newest vehicle is focused at the premium end of the market and will compete with a model from high-end start-up Lucid rather than a Tesla.
The fact that the automobile will be manufactured in both the United States and China, according to Ingenlath, is “evidence” that the company can leverage its parent businesses to assist globalize. “This is a fantastic chance for us since there is currently a plant running there, and there is a decision to introduce the new electric platform there,” he added.
Volvo established a plant in South Carolina in 2018, and the company has stated that by 2030, all of its models would be completely electrified.