Volvo-Backed Polestar Is in SPAC Merger Talks With Gores Guggenheim

  • Transaction could value electric-car maker at $25 billion
  • Volvo-backed Polestar is a rival to Tesla and Lucid Motors
Photographer: Qilai Shen/Bloomberg
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Polestar, the electric-car maker controlled by Volvo Car AB and its owner Zhejiang Geely Holding Group Co., is in talks to go public through a merger with Gores Guggenheim Inc., a blank-check firm, according to people with knowledge of the matter. Gores Guggenheim rose as much as 7.7% on the news.

A transaction may value the combined company at around $25 billion, the people said. No deal has been reached and it’s possible terms could change or that talks fall apart.