The EV market space is expanding dramatically as we speak. From contenders like Tesla to emerging players like Nikola and Rivian, electric mobility is gathering quite the attention.
One such contender, albeit with relatively established roots, is Polestar. Backed by Volvo and Geely, this EV startup is all set to go public very soon. The news comes courtesy of its merger with a blank-check company, Gores Guggenheim.Inc.
A blank-check company, also called, SPAC or a special purpose acquisition company is formed to raise money through an IPO to buy another company. What the deal effectively means to Polestar is the process of going public is made a lot easier.
Also, via this deal, Polestar’s valuation hits $20 billion— a significant milestone for the Swedish startup. Interestingly, Polestar’s investor list includes a certain celebrity who goes by the name of Leonardo Di Caprio, although his stake remains undisclosed.
Polestar’s move comes across as the second-biggest SPAC merger after Lucid Motors’ $24-billion deal in February 2021.
By going public, Polestar is looking forward to establishing itself in the U.S whilst giving its resident competitor Tesla, a run for its money.
Polestar: From Race Engineering To Electric Mobility
Polestar, which at the time was Flash Engineering, started as a racing team that participated in the Swedish Touring Car Championships (STCC). The team, however, changed hands and eventually was renamed Polestar Racing. They started working on Volvos in the late 2000s and eventually became the brand’s official partner as Polestar Performance, much like Mercedes and AMG.
Later on, Volvo bought the company in 2015 and started selling Polestar engineered products directly from their dealers. Polestar made quite a name when the C30 Concept prototype was revealed. The 450 horsepower hot hatch was tested by several reputed publications and purists desperately wanted Volvo to release the production version. Unfortunately, the C30 did not see the light of day and Volvo axed the project.
Soon after the C30, Volvo teased enthusiasts with the 510 horsepower S60 Polestar. However, just like the C30, this performance sedan proved to be yet another concept car. That said, 2013 did see the S60 Polestar entering production, however, it was a 350 horsepower version.
Come 2017, Volvo’s parent company, Geely Holdings, decided to make Polestar an independent company that exclusively focused on developing electric cars.
Polestar’s EV Lineup Looks Promising
Before the brand’s first-ever EV rolled out, Volvo used the Polestar name tag to position tuned versions of its regular models. Examples include the Polestar Engineered 415 horsepower Volvo S60, V60, and XC60 PHEVs. Though several of these Polestar Engineered products were revealed, it wasn’t until the Polestar 1 that the brand had its first mainstream offering.
Introduced in 2017, the Polestar 1 is a luxurious 2+2 that featured an electric hybrid drivetrain, much like the Polestar Engineered models. However, power stood at 600 horsepower as opposed to 415, courtesy of two 80 kW (110 hp) motors.
It was in 2019 when the brand revealed its first-ever fully electric vehicle, the Polestar 2. Granted, the brand’s naming exercise doesn’t show much effort, that is certainly not the case with the car. The 408 horsepower midsize sedan is the result of sophistication meeting elegance.
For 2022, Polestar offers a single-motor version of its midsize offering. Although power figures are yet to be announced, international markets have the single motor Polestar 2 rated at 231 horsepower.
The brand is expanding its portfolio with the Polestar 3, Polestar 4, and Polestar 5 scheduled to hit markets by 2022, 2023, and 2024 respectively. The Polestar 3 is an XC90-sized electric SUV, while the Polestar 4; a smaller crossover, and the Polestar 5: a premium liftback, targeting the Porsche Taycan and Tesla Model S.
Polestar And Its Competitors
Speaking of competition, Polestar has quite a lot from established players like Audi, BMW, and Porsche to the fast-growing newcomers like Tesla. With that said, one thing that goes in favor of the Swedish brand is its corporate sibling, Volvo.
Because Volvo has been in the business of making cars for a long time, Polestar can make use of its expertise and churn out quality products. This holds true for all the established automakers venturing into the EV market space.
Tesla, on the other hand, is different. While it has gathered significant market share, the brand is relatively young. And one thing that’s important with cars of any nature is reliability. Tesla has been known to have a lot of quality control issues and its offerings generally don’t hold well when compared to EVs from Audi and BMW.
This is what Polestar can capitalize on. Using Volvo’s tried and tested production techniques with Polestar’s technological ingenuity, the startup has a promising formula to give it a competitive advantage.
Will it work? Well, only time will tell.
Sources: Bloomberg, Forbes, Polestar, Volvo, Motortrend, YouTube