Polestar, Backed by Leonardo DiCaprio, Agrees to a $20 Billion SPAC Merger

Polestar, the electric-vehicle maker backed by Volvo Car Group and actor Leonardo DiCaprio, agreed to go public through a merger with a blank-check company at a roughly $20 billion enterprise valuation.

The automaker founded four years ago by Sweden’s Volvo and its Chinese owner Zhejiang Geely Holding Group Co. will combine with special purpose acquisition company Gores Guggenheim Inc., according to a statement. Roughly $1.05 billion of proceeds will help Polestar bring three new models to market within the next three years.

Unlike other auto upstarts that have debuted via SPAC deal, Polestar has models on the market and access to an established carmaker’s production network. The transaction with Gores Guggenheim is a coup for Volvo and Geely Chairman Eric Li, who set up the brand with an eye toward enticing external investors as EVs begin to take off. Polestar is betting it can better sustain its valuation than others that have sought to ride Tesla Inc.’s coattails.

Read the source article at Yahoo Finance