Swedish-based electric car manufacturer Polestar catapulted itself into the public eye in spectacular fashion last night following a polarizing ad spot during the Superbowl. The company only needed 30 seconds to get its point across, promising an uncompromising approach to making vehicles while also taking some notable shots at rivals Tesla and Volkswagen.
With more people talking about the company than ever before, we’re all no doubt wondering how we can buy shares in Polestar. Before we answer that though, let’s take a little look under the hood first.
What does Polestar do?
Polestar is currently majority-owned by fellow Swedish auto manufacturer Volvo following a purchase in 2015. The company is headquartered in Gothenburg, Sweden, and develops electric performance cars. Its Superbowl showing was designed around the Polestar 2, the first car of any kind to have an operating system exclusively powered by Google — a company that knows a thing or two about tech.
When can I buy Polestar stock?
Currently, Polestar is not a publicly-traded company. However, it did announce the signing of an agreement with Gores Guggenheim, Inc. (NASDAQ: GGPI), a special purpose acquisitions company (SPAC), last year that will see the company finally go public. The merger is expected to take place in the first half of this year according to Polestar’s official website. Following the deal, the company will be listed on the Nasdaq exchange under the ticker symbol PSNY.
While concrete data is currently unavailable regarding pricing and the number of shares to be made available, analysts estimate that Polestar could earn a market valuation of $25 billion at the high end of expectations.
We don’t know too much about Polestar’s overarching financials, as it escapes the rigorous reporting standards by debuting via SPAC as opposed to following the traditional IPO route. What we do know, however, is that it is already steadily producing and delivering vehicles, unlike many of the electric vehicle (EV) startups we’ve seen in the last number of years.
Polestar delivered just over 10,000 vehicles in 2020. while 2021 saw the company report year-over-year growth of over 185%, successfully delivering over 29,000 vehicles. While a precise breakdown was not given, it’s expected that the vast majority of these sales are from the company’s Polestar 2 line, which sells for just under $50,000. The Polestar 1, which would make up the rest of the sales figures, is highly exclusive in that only 1,500 were reportedly made available worldwide at a cost of over $150,000.
Polestar’s growth potential
Polestar is an extremely exciting prospect in the EV space. It has much of what a lot of other EV startups possess: sleek design, a competitive price-point, and a clear dislike for Elon Musk and Tesla — as evidenced by its Superbowl commercial. But, the company also possesses some stand-out qualities that these other startups don’t have.
First and foremost, Polestar is already selling cars. It has a clear production and delivery line in place, which has already grown considerably over the past two years. It has also launched in 10 markets so far, giving it ample space for growth across the globe.
Polestar also has a direct in-road into one of the world’s most lucrative markets for EVs — China. Polestar’s parent company Volvo is in turn owned by Chinese conglomerate Geely. As a result of this, Polestar’s production actually takes place in a plant in Chengdu. Having a clear footprint in both Europe and China gives it a distinct advantage over many EV startups that are confined to a single market.
It will take more than some thinly veiled insults in a Superbowl commercial to take Tesla’s EV throne, but Polestar has announced its intentions for all to see. It’s coming for the top spot in one of the world’s fastest-growing industries. While coming out on top is certainly a tall order, Polestar has all of the qualities needed to, at the very least, be a formidable player in the market for years to come.
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.