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The merger between the special-purpose acquisition company
Gores Guggenheim
and the electric vehicle maker born from Volvo is done.
Polestar (ticker: PSNY) is now trading as a public company on the Nasdaq.
Polestar announced the closing of the deal on Thursday afternoon. Now the Polestar ticker PSNY has taken the place of GGPI,
Gores Guggenheim
’s
trading symbol before the merger took effect.
The deal brings roughly $900 million onto the books of the merged company. The final amount might be a little different, depending on how SPAC shareholders voted.
The predecessor stock,
Gores Guggenheim
,
closed Thursday at $11.23 a share. Polestar stock was at $12.10 in early trading Friday, up almost 8% on a good day for markets overall. The
S&P 500
and
Dow Jones Industrial Average
were up 2.2% and 1.9%, respectively.
At roughly $12 a share, Polestar’s market capitalization is about $25 billion, based on the 2.1 billion shares that are outstanding now that the deal is closed. That works out to about 3.8 times estimated 2023 sales of $6.6 billion.
Polestar plans to ship about 124,000 units in 2023 to generate those sales. The company is delivering vehicles today and plans to ship about 50,000 in 2022. What’s more, Polestar shipped about 29,000 in 2021.
Polestar manufactures its vehicles at facilities it owns in China.
Polestar’s market cap is north of $20 billion, making it clear that investors consider the company a major EV player. The market caps of
Rivian Automotive
(RIVN) and
Lucid
(LCID) are about $27 billion and $32 billion, respectively. Chinese EV maker
NIO
(
NIO
) has a market cap of about $36 billion, while
Ford Motor’s
(F) is roughly $46 billion.
The newly merged company will ring the opening bell at the Nasdaq on June 28.
Write to Al Root at [email protected]
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