Gores Guggenheim’s EV merger target, Polestar, delivered on its 2021 sales goal selling over 29,000 Electric Vehicles. The Swedish EV manufacturer has driven investor interest as the company offers EV sales exposure in Europe. Polestar is vastly expanding, with a global presence in 19 markets in 2021, with particular growth in Europe and Asia Pacific.
Furthermore, Polestar looks to take European marketshare in 2022, adding Spain, Portugal and Ireland to their sales portfolio. The company also looks to enter into the Middle East with presence in the UAE, Kuwait and Israel.
“It is a hugely exciting time for the brand, with new markets and models to support the ambitious growth plans we have set for ourselves.”Thomas Ingenlath, Polestar CEO on Polestar Delivery numbers in 2021
How did Polestar perform in 2021?
in 2021, Polestar was able to deliver on its global sales target of 29,000 vehicles, representing year-on-year growth north of 185%. Along with strong vehicle sales, the companies sales presence almost doubled with the Polestar 1 competing in 19 markets.
According to Polestar, the 29,000 vehicle target would generate the business $1.6 Billion in revenues for the year. Ofcourse, until the company goes public we will not know for certain how much the company generated in 2021.
“With strong new market launches and the fantastic reception of an expanded Polestar 2 model line-up, we have seen interest in Polestar and vehicle sales increase in all our markets. Our order intake is strong and we are looking forward to further growth in our sales volume again in 2022.”Mike Whittington, Polestar’s Head of Sales
Polestar also announced its proposed business combination with Gores Guggenheim (Nasdaq: GGPI) in September 2021. The SPAC merger is expected to generate Polestar roughly $1 Billion in Cash proceeds to continue its expansion strategy and roll out of new EV models.
Polestar and Gores Guggenheim merger details
On September 27, Electric Vehicle manufacturer Polestar announced its plans to go public via a merger with SPAC company Gores Guggenheim (NASDAQ:GGPI). The proposed deal is expected to close some time in the first half of 2022, which will see Polestar trade under the ticker (NASDAQ:PSNY).
Just like the majority of SPAC deals, both companies will need to meet its customary closing conditions as well as receive approval from GGPI shareholders.
Rumours regarding the $20 Billion merger initially broke in July however both companies have now confirmed investors speculations. The GGPI merger will provide $1.05 Billion in proceeds to fund the Swedish businesses expansion model.
The Bottom Line: Polestar hits EV sales target in 2021
In summary, Polestar’s strong delivery numbers in 2021 are a confidence booster for investors ahead of the Gores Guggenheim SPAC merger in 2022. With the SPAC merger expected to take place in the first half of 2022, it will be important for Polestar to continue its sales growth.
With incremental costs of expansion on the horizon, sales and revenues become vital in keeping the company afloat. Polestar expects to sell 65,000 Polestar vehicles in 2022 equating to roughly $3 Billion in revenues.
With the proposed merger proceeds exceeding $1 Billion, the injection of cash will be vital for Polestar’s expansion of the Polestar 3, 4 and 5 models over the next 5 years. Lastly, Polestar’s expansion into European and Middle Eastern markets will be also key in driving above consensus sales in 2022.
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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.