Electric-car maker Polestar guns for Nasdaq listing on June 28

SINGAPORE - Swedish electric-car maker Polestar is gearing up for a listing on the Nasdaq on June 28, joining a growing line of new electric vehicle (EV) companies that have gone or announced plans to go public in recent months.

A source close to the development said the date is confirmed, "assuming everything goes according to plan".

Polestar will team up with private equity firm Gores Guggenheim to float on the bourse in New York City. The listing is said to have a valuation of US$20 billion (S$28 billion).

Its imminent listing follows that of Volvo Cars in October 2021.

On May 25, the United States Securities and Exchange Commission declared effective the combination of Polestar and Gores Guggenheim. Polestar will hold a special meeting on June 22 for warrant and stock holders.

Polestar's first all-electric model, Polestar 2, was launched in 2020. To-date, the company has 50,000 cars on the road, including some 1,500 Polestar 1 plug-in petrol-electric hybrids.

It expects sales to hit 290,000 units - 10 times its 2021 volume - in 2025.

It is currently in 23 markets (it arrived in Singapore last November), and expects to expand to another seven by end-2023.

As at end-April, there are 62 Polestar 2 cars on the road here.

On Tuesday (June 7), the manufacturer unveiled the Polestar 3, a performance sport utility vehicle (SUV) about the size of the Porsche Cayenne. At its global launch in October, the car will have a dual-motor drivetrain, with a targeted range of more than 600km.

An SUV coupe around the size of the Porsche Macan - named Polestar 4 - will follow next year.

In 2024, the Polestar 5 four-door grand tourer will be rolled out. This is based on the stunning Polestar Precept, although the production car may not have rear-hinged rear doors.

Last July, American electric car start-up Lucid Motors listed on the Nasdaq. That same month, Chinese EV company Xpeng started trading in Hong Kong, followed by compatriot Li Auto in August.

In November, American EV company Rivian started trading on the Nasdaq.

Last month, Chinese premium EV-maker Nio started trading on the Singapore Exchange, following listings in New York and Hong Kong.

Last week, Vietnamese EV firm VinFast moved its headquarters to Singapore ahead of an initial public offering in the US.

The markets, however, have been unkind to EV stocks since end-2021.

Rising interest rates and higher cost of raw materials such as lithium and nickel are hitting the capital-intensive industry.

A prolonged lockdown in China (which has just been lifted) halted production, while the war in Ukraine has worsened an ongoing supply chain crisis which erupted when world economies reopened after the Covid-19 pandemic.

Market leader Tesla is not spared. Two weeks ago, its stock hit US$628, almost half its 52-week high of US$1,243.