Volvo, Swedish automotive manufacturer of luxury vehicles has said it would be producing only electric vehicles (EVs) by year 2030. Announcing its plan for an initial public offering, the Swedish automaker is hoping to raise more funds to accelerate its transition to an EV-only producing company.
This announcement comes after last week’s reports that Polestar would be merging with a special purpose acquisition company, SPAC, to go public. And that deal values Polestar at about $20 billion. This, despite selling just only two models — an all-electric fastback sedan, and a hybrid luxury coupe. Meanwhile, Volvo is reportedly going to proceed with an IPO in Stockholm that’ll value the company at over $25 billion.
Volvo Targets 25 Billion Kronor ($2.86 Billion)
Volvo has revealed its plans to raise a target 25 Nikon Kronor, equivalent to $2.86 billion. However, the company hopes to be able to achieve the target, only by issuing new shares. With that amount, Volvo can accelerate plans to get gas-powered cars out of stock. This will in turn, help in achieving its aim of becoming an EV-only company, by the year 2030. Also, this represents a major comeback for Volvo, that was sold by Ford to Geely in 2010, for just $1.8 billion.
It was in 2020 that Volvo launched its first fully electric car, the XC40 Recharge. The SUV, which has a range of about 200-mile range, can charge its batteries up to 80% in about 40 minutes. The successor, which is the C40 Recharge, is expected to be released later this year. While the electric XC90 SUV will not be revealed until next year.
Governments around the world are already cracking down on production of gas cars amid rising concerns about exhaust pipe emissions. And there will be no better time for Volvo, to transition to producing fully electric vehicles, than now.
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