Actor Leonardo DiCaprio backs EV maker with plans of titanic proportions
EV maker Polestar currently has all that it takes to make big strides into the electric vehicle segment. It is backed by Hollywood actor Leonardo DiCaprio along with Volvo Group and has now agreed to go public through a merger with a blank-check company at a roughly $20 billion enterprise valuation.
While Volvo will invest as much as $600 million more in Polestar, giving it a close to 50% holding, it is not clear how big is the stake held by DiCaprio. What is known is that DiCaprio has a reputation to invest in companies backing sustainability. "One of the strong stories that is inherent to Polestar is sustainability. It’s as well very important for Leo. He and us being joined on that journey, him investing in our company, obviously that makes sense for both sides," Poletar's CEO Thomas Ingenlath said in an interview.
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The EV maker was founded four years ago by Swedish auto company Volvo and China's Zhejiang Geely Holding Group. It will now combine with special purpose acquisition company (SPAC) Gores Guggenheim Inc and use the $1.05 billion proceeds from the merger to drive in three new models to market within the next three years.
Polestar has big dreams that come with the backing of established individuals and entities. The EV maker aims to sell 29,000 vehicles this year and make 2,90,000 deliveries in 2025, when it expects to make a roughly 9% margin on earnings before interest and taxes. Currently operating in 14 markets, Poletsar plans to expand its reach to 30 by the end of 2023.
The electric vehicle company's first all-electric car and the second vehicle in its portfolio, Polestar 2, commenced production in March at Geely’s factory in Luqiao, China. In June, the company announced that the Polestar 3 SUV will be built in Volvo’s lone US assembly plant near Charleston, South Carolina.
(with inputs from Bloomberg)