Polestar makes a big jump at stock market debut

June 24, 2022

16:15

The price of the previously empty stock shell Gores Guggenheim opened 8 percent higher on Nasdaq on Friday, marking the electric car maker Polestar’s successful debut on Wall Street. After a 4 percent plunge, the stock shot up almost 16 percent after a solid sprint in the closing hour.

Polestar is going public through a merger with the empty stock shell Gores Guggenheim. That is a listed fund without assets, but with more than $850 million in cash, raised by the private equity player Gores Group and the investment bank Guggenheim.

Before the fair, a price gain of more than 14 percent was on the cards, but at the effective opening of the market, this was still 8 percent. After half an hour, the price increase had almost completely evaporated.

After a dip to -4 percent, the stock with the ticker PSNY started a comeback. At around 9 p.m., it was again more than 5 percent in the plus. During the last quarter of trading, profits continued to gain momentum. Ultimately, the spac behind Polestar closed 15.76 percent higher at $13.

Polestar’s IPO is notable because empty shells have had an extremely difficult time on the exchange in recent months. Investors no longer simply believe the sweeping vistas and accompanying immense profits in the distant future that such SPAC companies hold up to.

E-brands out of favor

This applies in particular to new electric car brands. The American Riviera

which briefly had a higher stock market value than Volkswagen last year, has lost more than 70 percent of its stock market value since the beginning of the year.

Lucid, another ambitious electric car maker, lost more than half of its stock market value this year. Even Tesla

which, in contrast to Rivian and Lucid, already has a high-performance production facility and has proven that it can make money with the production of electric cars, has fallen more than 40 percent since 1 January: more than 500 billion dollars in market value went up in smoke. .

Polestar CEO Thomas Ingenlath was not deterred by this. While he reflected on Rivan’s valuation at the end of last year, he now emphasizes that Polestar is completely different. Unlike Rivian, Polestar already has a fully operational factory, sold tens of thousands of cars and has several new models in the pipeline.

New models

Polestar is best known in our country as the seller of the popular electric car Polestar 2. In the first five months, almost 700 units were sold in our country. That makes Polestar the best-selling brand that only sells electric cars after Tesla.

Later this year, Polestar will introduce another SUV, the Polestar 3. After that, two more new models are on the way, including a smaller, cheaper SUV. Polestars will never be really cheap, CEO Ingenlath says in a conversation with De Tijd: ‘We are a premium brand.’

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