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 TSLA and Lucid Motors, which is going public via Churchill Capital Corp IV CCIV.

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

The company is in talks with Gores Guggenheim Inc 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 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.