Cutting a huge check to help bring fledgling electric vehicle maker Polestar public makes perfect sense for investment pioneer Alec Gores, who has earned his reputation in recent years with very successful SPAC transactions with Hostess and Luminar.
According to Gores, it just checks all the boxes.
“We literally see a ton of deals. The first thing is that we thoroughly vet everything. Then we have a lot of discussions about what we find. The trick is to start with a great firm that has the potential to be the market leader.
Then you proceed to the management team, then to the product, which must be excellent, as well as revenues and projections. Most importantly, we must be on the same page with the management team.
In this scenario, Thomas [Ingenlath, Polestar CEO] and his colleagues are fantastic. Having a Volvo link also helps in this situation “Gores discussed his selection process for a SPAC transaction with Polestar on Yahoo Finance Live.
Polestar, a Volvo subsidiary in Sweden, said this week that it will go public by merging with a SPAC formed by Gores and investment bank Guggenheim.
Polestar now has a $20 billion enterprise value as a result of its merger with the Gores Guggenheim SPAC. It comprises $800 million in capital from Gores Guggenheim, which will be used to increase the manufacturing of Polestar’s current model line and create new offerings.
According to Polestar’s investor presentation, the company hopes to reach breakeven by 2023. By the end of 2025, the corporation expects to have $17.8 billion in sales and $1.6 billion in operating profits.
“This is a delivery company – we actually deliver vehicles. This year, we have received 29,000 deliveries. I believe our proven track record has persuaded Alec and his team to believe we will meet our expectations “According to Ingenlath on Yahoo Finance Live.
Gores added, “This excites us tremendously. We have faith in it. Thomas and his crew will be among the space’s leaders. We have a lot of revenue convictions. It’s not an idea; it’s a genuine car.”