Polestar, an electric-vehicle manufacturer, scheduled to go public through a reverse merger valued at $20 billion in the coming year, is expected to combat chip shortages through 2022 when it increases production to meet goals for sales that investors have been given.
The top executives from Polestar, which is supported by Volvo Car Group and Zhejiang Geely Holding Group Co., were in New York on Thursday to showcase a brand new premium sports sedan, called known as the Polestar 5. Based on the company’s Precept idea car, the sports car aims to take market shares market share from Porsche AG and Tesla Inc. The car is one of the three models Polestar will launch in 2025.
“We had to fight every month to make sure we had the production up and running,” Thomas Ingenlath, Polestar’s chief executive officer, told the press about this year’s sales for the Polestar 2 model which is produced in China. “The pressure has not eased towards the end of the year — it’s still on, and we expect it in 2022,” Ingenlath told reporters when speaking to reporters in New York.
The brand was created as a pure electric performance brand in the year 2017; Polestar is trying to distinguish itself from other electric start-ups through the belief that it can benefit from the manufacturing capacity shared by its Swedish and Chinese parents. It is a fastback brand known as the Polestar 2, in production in Luqiao, China, where the Polestar 5 will also be constructed, using batteries from the South Korean company SK Innovation, Ingenlath said.
Polestar has announced that in September that it will join forces with special-purpose acquisition firm Gores Guggenheim Inc. in an arrangement that valued the company at around $20 billion. Around $1.05 billion of the proceeds will enable Polestar to launch three new models on the market over three years.
