If you’re looking to make a successful investment in an electric vehicle startup, then you should consider investing in Polestar. The company has been in business for over a decade and has delivered thousands of cars. This gives it a head start on other EV startups that are just starting out. It also has the benefit of a recognizable brand name, which could help it stand out in an increasingly crowded EV market.
Founded in 2017 by Volvo Cars and the Zhejiang Geely Holding Group, Polestar has a mix of insider and institutional ownership. This means that any change in ownership could affect the company’s share price. Investors should be aware of the company’s structure before investing.
The merger will give Polestar an approximate 94 percent stake in the company, while the GGPI, Sponsor, and PIPE will own the rest. The GGPI is expected to retain a stake of up to 0.9%, which is worth $230 million at a $25 billion valuation. The founders’ shares are worth about $18 million and warrants are worth around $20 million.
The deal implies a combined enterprise value of USD 20 billion, which is approximately 1.5x the company’s projected revenue in 2024 and 3.0x in 2023. The deal provides the current ownership of the company with an estimated 94% stake, which will be rolled into the pro forma company.