What's Going On With The Polestar And Gores Guggenheim SPAC? Here's The Details

A leading electric vehicle company shared an update Monday morning. Here are the details investors should know.

What Happened: A SPAC merger between Gores Guggenheim Inc GGPI and electric vehicle company Polestar could be getting closer with the company announcing its F-4 statement filed. The companies expect the merger to close in the first half of 2022.

The companies provided an update on how Polestar is faring in the electric vehicle market.

Polestar has cars in 14 markets and plans to be in 30 markets by the end of 2023. Countries to be added in 2022 include Spain, Portugal, Ireland and Israel.

The company has added 46 new retail locations in 2021, which includes 20 U.S. locations. New York City and Boston are among the latest U.S. retail locations added. The company has 86 retail locations open globally as of Monday. Polestar reports that over two million people have visited company retail locations since August 2020.

Polestar expects to have sales of 290,000 by the end of 2025. Vehicles are currently produced in two facilities in China with plans to add manufacturing capabilities in the U.S.

“We look forward to further accelerating growth by expanding our global presence and continuing to innovate our product portfolio,” Polestar CEO Thomas Ingenlath said.

Related Link: The Next Tesla Or Lucid Motors? The Polestar SPAC Merger Could Put The EV Maker In The Lead

Why It’s Important: Unlike other electric vehicle start-ups, Polestar has vehicles on the road. The company was founded by Volvo Cars and Geely Holding and stands to be a pure-play electric vehicle company for investors after the SPAC merger is completed.

The relationships with Volvo and Geely could help with increased production and brand awareness.

The company’s plans for growth include adding retail locations around the world, increasing its production capabilities and adding new vehicle models to its lineup.

“Longer-term, this expansion will be fueled by our plan to launch a new car every year for the next three years,” Ingenlath said.

The company’s Polestar 1 is a hybrid vehicle that will stop production in late 2021. The company’s Polestar 2 is a fully electric car that has been well-received by the market and won many awards.

A fully electric SUV called Polestar 3 is expected to be the company’s next vehicle produced.

Price Action: GGPI shares are up 12,.56% to $14.44 on Monday morning. Shares have hit all-time highs in several consecutive trading days.

Photo: Courtesy Polestar