Written by Brenda Nakalema

Polestar Trades on Nasdaq For The First Time

The merger between the special purpose acquisition company Gores Guggenheim (ticker: GGPI) and the EV maker born from Volvo is …

The merger between the special purpose acquisition company Gores Guggenheim (ticker: GGPI) and the EV maker born from Volvo is finally completed. The newborn, Polestar, will be publicly traded on Friday.

The deal closing was announced on Thursday afternoon by Polestar. Friday trading saw Gores, whose shares historically traded under the symbol ‘GGPI’, will become Polestar trading under the new symbol ‘PSNY’.

The deal closes with roughly $900 million on the books of the merger company. The final amount might be slightly different, depending on how SPAC shareholders voted.

Gores shares gained 1.4% in late trading on Thursday. The S&P 500 and Dow Jones Industrial Average gained 0.8% and 0.4%, respectively.

Polestar’s market capitalization stands at roughly $23 billion with $10.99 a share, based on the 2.1 billion shares that are still outstanding now that the deal is closed. That leaves it at about 3.5 times the estimated 2023 sales of $6.6 billion.

Polestar plans to ship roughly 124,000 units in 2023 to meet its estimates. The company is delivering vehicles today and plans to ship roughly 50,000 units in 2022. The company previously shipped about 29,000 units in 2021.

Investors consider Polestar to be a major EV player with a market cap of over $20 billion. The market caps of Rivian Automotive (ticker: RIVN) and Lucid (ticker: LCID) stand at roughly $27billion and $32 billion, respectively. Chinese EV maker NIO (ticker: NIO) has a market capitalization of about $36 billion. Ford Motor’s (ticker: F) capitalization stands at about $46 billion. The newly merged company will get its opportunity to ring the bell at Nasdaq Friday morning.