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Polestar, an iconic manufacturer of electric vehicles jointly owned by the Volvo Car AB and China’s Zhejiang Geely Holding Group, is rumored to be in talks to go public by merging with the Special Purpose Acquisition Company (SPAC), Gores Guggenheim (NASDAQ:GGPI).

As a refresher, Polestar is currently retailing two cars: the hybrid Polestar 1 that costs over $150,000, and the all-electric Polestar 2 that starts retailing at $59,900 and boasts of a range of around 260 miles. In addition, the Polestar 3 SUV and the Polestar Precept – a Tesla Model S competitor – are currently in the prototype phase. The company is currently manufacturing its vehicles in Geely-owned facilities in China. However, the Polestar 3 would be produced in Volvo’s Ridgeville, South Carolina, facility.

The EV manufacturer aims to be sustainability-centric. For instance, the Polestar Precept would feature an interior built from environment-friendly materials, including recycled PET bottles, reclaimed fishing nets, and recycled cork vinyl. Additionally, the EV manufacturer aims to reduce the weight of interior components by 50 percent and reduce plastic content by 80 percent via the utilization of a flax-based composite developed by Bcomp. Moreover, Polestar is currently the only EV manufacturer in the world that utilizes blockchain-traced cobalt, thereby precluding the possibility of any artisanal cobalt entering its supply chain. In another important feature, the company has been improving the features in the Polestar 2 via OTA updates since December 2020.

As far as the company's financials are concerned, the company earned MSEK 5,540 million ($645 million) in revenue in 2020, registering a growth of over 600 percent relative to the 2019 top-line figure.

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As per the reporting by Bloomberg, the EV manufacturer is expected to be valued at around $25 billion if its merger with the SPAC Gores Guggenheim materializes. This means that the company would be valued at around 38x its 2020 revenue. For reference, Tesla (NASDAQ:TSLA) is currently trading at 19.96x its 2020 revenue. Nonetheless, given that Polestar is just entering into its aggressive growth phase, a rich valuation multiple is to be expected.