Following an explosion of IPOs and SPACs across 2020 and 2021, the landscape for debuting companies has now come to a crashing halt. Investors are already rotating away from growth stock towards proven, long-term winners, so why would they look to invest in a stock with no public track record?
On the other hand, when a company does rise up and go public in this environment, it’s definitely something to take notice of.
A challenger emerges
Polestar is a Swedish electric car manufacturer that specializes in performance cars. Earlier this year, it catapulted itself into the general social consciousness following a sublime Super Bowl halftime ad that took some outright shots at market leaders Tesla and Volkswagen.
Its current offerings are relatively limited, with its first vehicle — the Polestar 1 — reportedly only manufactured 1,500 times worldwide. Its current car, the Polestar 2, is the first car of any kind to have an operating system exclusively powered by Google — not the worst ally to have when you’re taking on the might of Elon Musk and Co.
But, can Polestar possibly compete with the established players in the EV space? Well, it certainly has a chance. Polestar is majority-owned by fellow Swedish automaker Volvo who, in turn, is owned by Chinese conglomerate Geely. This gives Polestar a clear footprint in both China and Europe — two huge markets for the burgeoning EV space.
On top of this, Polestar is actively producing and, more importantly, selling cars — something not all EV makers can claim. I’m not saying Polestar is set to mount a challenge on Tesla just yet, but this could be one of the biggest disruptors to the public EV market we’ve seen in quite some time.
Polestar is set to begin trading on the Nasdaq today under the ticker symbol PSNY through a SPAC merger with Gores Guggenheim, Inc. — watch this space.
Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.