Polestar Volvo EV SPAC

Polestar hybrid, single.  1?  I forgot.  It looks like the new Volvo P1800, but don't call it Volvo.

Polestar hybrid, single. 1? I forgot. It looks like the new Volvo P1800, but don’t call it Volvo.
picture: Getty Images (Getty Images)

If there’s one big thing in the world of electric car startups, it’s using SPAC to hide information that’s usually revealed when you’re public. I was hoping Polestar, the EV branch from Volvo, would be different. All that and more in morning shift On September 27, 2021.

First gear: Polestar is different from the usual electric car startups, but…

… The use of SPAC in public appearances was one of .’s calling cards Start shady EV. As the Defector puts it in “Plumber’s gold rush is the financial bubble at its peaklet SPACs Companies skip disclosures, as has been the case lately This failed Nicola:

Last March, Nikola announced that it would go public. Nikola is in the electric truck business, although it’s more accurate to say she’s working on convincing investors that she might one day make electric trucks on a large scale. Nicola target market In June, not through an initial public offering but by merging with VectoIQ, a special purpose acquisition company, or SPAC. VectoIQ’s only assets were a list of stocks and some cash on hand; It existed solely to enable the investment in and public trading of Nikola’s stock, all without the onerous disclosures and prospectus required for a traditional initial public offering.

Nikola founder Trevor Milton’s pompous remarks about the promise of hydrogen vehicles followed a massive jump in Tesla’s stock price, and retail investors got in early and helped triple the stock price to nearly $80. Last September, the company announced a $2 billion deal with General Motors, whose former vice president founded VectoIQ. The future looked like a big green line, advancing towards the northeast on the chart.

This was the result of a dream for the people who formed the shell company that bought Nikola. Success stories like these are part of the reason why SPACs have never been more popular as tools for high-profile investors.

That all doesn’t look great!

If I ran an EV, I wouldn’t want to do it Any thing That’s what Nicholas did, but I don’t run an EV! Polestar, meanwhile, is he, jumping on the SPAC train, like financial times Reports:

Polestar, the premium Swedish electric car company spinoff from Volvo Cars and backed by actor Leonardo DiCaprio, has agreed to go public with a $20 billion valuation of a special purpose buyout company.

The Gothenburg-based company will merge with Gores Guggenheim, a Spac backed by billionaire private equity investor Alec Gores and Guggenheim Capital. The deal will position Polestar, which was founded by Volvo Cars and its Chinese owner Geely four years ago, as one of the most valuable electric car companies to list on Spac.

Polestar will receive $800 million raised by Gores Guggenheim earlier this year in addition to $250 million in cash from a private investment in public equity transactions, a fundraising process that often accompanies Spac deals. The deal estimates Polestar to triple its projected revenue for 2023.

Polestar should be enjoying this moment while he can The Federal Reserve begins to consider the lie that is the spectacle of SPAC.

so they Can I avoid a bunch of regulatory safeguards by going public with SPAC, can I really be so angry at Polestar? It is a for-profit company, and it is their duty to use every trick in the book to increase that profit. Still, there is something to feel here. Polestar is just a branch of a well-established and straightforward automobile company. It doesn’t look like it should be Do the same kinds of tricks you see from night-flying startups.

Second gear: Let’s check out the Evergrande

Speaking of electric car startups, how is Evergrande, the Chinese branch of a real company An empire in free fall? Not cool, like financial times Reports:

Shares in Hong Kong’s electric car unit Evergrande fell after it scrapped plans for a secondary listing on Shanghai’s Star Market, as bondholders remained in limbo after the debt-laden Chinese property developer missed a significant boost last week.

The withdrawn listing is the latest blow to a unit that has had a stock market valuation higher than Ford and comes as Evergrande’s liquidity crunch has disrupted global markets and raised fears among international investors that they will not be repaid if the company defaults.

The developer failed to make a coupon payment of $83.5 million due Friday for one of its dollar bonds and has a 30-day grace period before officially causing a default. As of Monday morning, the real estate developer had not provided any new information to international investors, according to the bondholder.

As usual, making cars is hard OK, starting a car company might not be that hard, but actually it’s a bit tricky to follow.

Third gear: The Greens take a record win in Germany

Much of the news coming out today from Germany’s federal election is that the Green Party did not win the expected size, but the party won more seats than ever, such as The New York Times Reports:

Armin LaschetMerkel’s Christian Democrat candidate was long seen as the frontrunner until a series of blunders, compounded by his unpopularity, eroded his party’s advance. Olaf Schulze, the Social Democratic candidate, was completely disqualified before his steady personality led his party to a stunning 10-point comeback. And vegetableswho led the polls for a brief period early on, did not live up to expectations but scored his best result ever.

The Greens support an alternative Kuhn version of Germany, one that actually spins away from its prestigious export, gas-powered cars. TThere may be a lot of power in green hands thanks to Germany’s parliamentary coalition government system, so we You could see an interesting acceleration of ICE cars off the road. An enjoyable one to watch.

Fourth gear: Virginia just saved billions of booster trains not on the highways

This is a fun one of one of the few places in America where it makes more sense to take a lot of the trips by train rather than by car. Virginia’s new rail initiative to help get people into the capital and into New York is much cheaper than a major highway expansion meant to do the same job.

Traveling by car is much more convenient than traveling by train here on the East Coast, if you only drive between 2am and 5am, avoiding all traffic.

5th Gear: New York City taxi workers coalition on ninth day of city council protest

Taxi workers are still not treated fairly by city and state governments here in New York Instead, the big money goes to predatory debtors. We are on the ninth day of protests at City Hall. We stand with the Taxi Workers Alliance!

Rear: the first built Model T

via Henry Ford:

This is Ford Motor Company’s record of the first Model T assembled on September 27, 1908 at the Piquette plant in Detroit. Production card lists it as a Model 2090, the No. 1 car. It had 4 cylinders, 2 winches (second to rear) and 2 foot pedals. 1,000 of these early T’s were produced.

Neutral: How are your projects?

I decided to fix the SunTour Alpha 5000 rear track in a Fuji Sundance ’87 that I took out of a trash can in the neighborhood, and I’m somewhat convinced that while releasing the main pivot spring, the retaining plate flew a little from the porch into the bush. Wish me luck in finding it.

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