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The market has cooled on SPACs, however Polestar has the community and know-how
Polestar, the EV subbrand from Volvo and Geely that launched final week on the Nasdaq at a $20 billion valuation, didn’t earn its $PSNY ticker by taking the standard route towards an IPO.
With the ringing of the bell, Polestar grew to become the most recent EV maker to rush to the inventory trade by merging with a particular objective acquisition firm, or SPAC, earlier than turning into worthwhile.
Being underneath Volvo’s aegis provides Polestar a head begin over typical electrical car startups, although its manufacturing targets might show difficult given their relative scale when in comparison with different just lately SPAC’d EV firms.
The merger with blank-check firm Gores Guggenheim raised roughly $890 million for Polestar, which is able to use the cash to fund an aggressive three-year development plan. However thus far, regardless of its appreciable assets because the baby of a multinational conglomerate, its inventory has largely stagnated. It debuted at $10 per share and jumped to $13 after the SPAC merger was accomplished on June 24, however was buying and selling Wednesday morning round $9.70 per share.
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