Tesla Rival Polestar Could Be Valued At $25B In SPAC Deal: What Investors Should Know

Electric vehicle company Polestar could be nearing a SPAC deal to go public, according to a report from Bloomberg.

The company competes with Tesla Inc (NASDAQ: TSLA) and Lucid Motors, which is going public via Churchill Capital Corp IV (NYSE: CCIV).

What Happened: Polestar, an electric vehicle brand from Volvo AB (OTC: VLVLY) and Geely Automobile Holdings (OTC: GELYY), is exploring a SPAC deal that could value the company at $25 billion.

The company is in talks with Gores Guggenheim Inc (NASDAQ: GGPI).

Related Link: EV Maker Polestar Said To Be In SPAC Talks For U.S. Listing, Raises $550M

Why It’s Important: Sweden-based Polestar launched the Polestar 1, a plug-in hybrid, as its first model, and also has the Polestar 2, an all-electric car that entered production in March.

The company’s Polestar 3 SUV could be built in the U.S. using Volvo’s existing production plants, with a goal of introducing the vehicle to the U.S. market in 2022.

Polestar entered into an alliance with charging infrastructure company ChargePoint Inc (NYSE: CHPT) earlier this year to create seamless charging. Through the partnership, an in-car app will let Polestar 2 owners plug in the vehicle and charge with billing and payment already completed.

Seamless charging is a market dominated by Tesla through the Supercharger network, according to TechCrunch.

Polestar comes with high praise from many technology companies, including Wired calling the Polestar 2 the “Best EV there is right now” and TechCrunch saying “Polestar built a better car than Tesla.”

GGPI Price Action: GGPI shares were up 5.14% to $10.23 Thursday.

Photo: a Polestar 2. Courtesy of the company.