This is Eric Hackel from Deutsche Bank. Thank you for joining our announcement call today. We are very excited to announce the de-SPAC transaction between Gores Guggenheim and Polestar. Before we begin, I would like to remind everyone that our remarks contain forward-looking statements, and we refer you to slides 2 and 3 of the publicly filed investor presentation for a detailed discussion of these forward-looking statements and associated risks. With that, I would like to introduce you to today's speakers, Alec Gores, Chairman of Gores Guggenheim, and Mark Stone, CEO of Gores Guggenheim, as well as Thomas Ingenlath, Chief Executive Officer of Polestar, and Nils Mösko, strategy and business development at Polestar. With that, I will now turn our conference over to Alec for some opening remarks.
Thank you, Eric, and good morning, everyone. I would like first to thank you all for joining us today. We are incredibly excited to share with you the proposed business combination between Gores Guggenheim and Polestar. Gores Guggenheim has set out to find a partner with a strong growth profile and high-quality management team with an attractive valuation proposition, and we believe Polestar fits these criteria perfectly. This transaction represents the ninth de-SPAC business combination for the Gores platform, and we view this as an incredible opportunity to collaborate with a company that is a standout in the EV space, focused on design, performance, technology, and sustainability. Polestar is truly differentiated from other EV companies and already has cars on the road across the globe, with three new models expected to launch over the next few years. I personally have had the privilege of seeing the lineup of upcoming models.
These cars are unlike any other you have seen on the road and represent best-in-class innovation and industry-leading design. Polestar offers the unique combination of visionary, innovative, and nimble team with the ability to leverage a deep history of manufacturing expertise through its partnership with Volvo. Sustainability continues to be a key component of our investment strategy, and sustainability is the epicenter of Polestar mission. Following the transaction, the company is expected to be well-positioned to capitalize on these exciting times for car manufacturers. This transaction is consistent with our track record of partnering with innovative leading companies, and we are confident we will be able to help support Polestar achieve its long-term goals. Now I would like to hand the presentation over to Mark Stone to provide further detail regarding the transaction terms and investment highlights.
Thank you, Alec. For those of you who saw the press release this morning, we filed a detailed investor presentation that provides an overview of both Polestar and the transaction. We have looked at many high-growth opportunities in the autonomous driving and EV space over the last several years, only two delivered a level of unparalleled differentiation and competitive advantage that we felt critical to achieving success in the market. Luminar, which we brought public at the end of last year, now Polestar. Polestar is a design-led sports performance-oriented electric OEM focused on industry-leading sustainability solutions while rapidly integrating the latest technology into its cars. Polestar is a real company. It is one of only two global pure-play EV OEMs making and selling cars today.
The company is targeting $3.2 billion in revenue next year, and its first mass production model, the Polestar 2, has already won 47 awards globally. The company is currently present in 14 markets and rapidly expanding to 30 planned markets over the next two years. One of Polestar's most compelling points of differentiation is that it combines the best of both worlds. It offers the agility and disruption of a pure-play startup while benefiting massively through its leverage of the infrastructure of Volvo and Geely. This leverage gives Polestar a unique, and some might say unfair advantage, in its ability to move at an unrivaled pace, exemplified by its plan to roll out three new vehicles over the next three years, something no other EV company has been able to do.
The company already has near instant global reach and an asset-light model that we believe will deliver industry-leading capital intensity and return on asset metrics. Polestar has the enviable ability to tap the group's ecosystem for leverage in fundamental areas such as manufacturing, supply chain, safety testing, customer delivery, and after-sales support, leaving it the luxury of focusing its time and efforts on core areas of differentiation, key elements that turn heads on the road, deliver superior driving and customer experiences, growing the business, and ramping the brand. Polestar is not just another electric car company. It's the brand that is redefining luxury for the sustainable age. Polestar is also optimally positioned to capitalize on the highest pockets of growth in a rapidly accelerating EV market.
The company already has an expanding presence today in the fastest-growing geographies and the three new models planned to launch over the next several years. Polestar's model lineup will address the overwhelming majority of the luxury market, covering a wide array of price points and vehicle categories that let customers grow with the brand. We believe Polestar will be one of the most successful and exciting pure-play EV companies for years to come, and we are very excited to be part of their story. Now, let me turn it over to Thomas.
Thank you, Alec and Mark. Ladies and gentlemen, thank you for joining. I'm Thomas Ingenlath, CEO of Polestar. Polestar is already up and running. Other electric car companies have come to the market asking for funds to build their factories, develop their cars, and build their brand. We have already done all three. There are plenty of companies out there that can make electric cars, but none of them are like Polestar. This is a company that combines the best of both worlds. Polestar is an unconventional, innovative, young company with speed and agility. At the same time, we have access to industrial heritage and expertise through our strong partnership with Volvo Cars. This partnership gives Polestar access to massive development and manufacturing resources. It also provides worldwide distribution and supply channels.
For our customers, this means they can have confidence in the quality and safety of our cars, providing credibility and trust to a young brand like Polestar. At the same time, Polestar can develop cars free from the legacy technologies and processes of the past. We have built a powerful, inspiring brand with avant-garde, outstanding design at its core. Scandinavian high-tech minimalism defines the luxury for the sustainable age. Our cars are outstanding. Press and customers fall in love with them. The Polestar 2 alone has won 47 awards around the globe and counting. We are on a mission to improve the society we live in by accelerating the shift towards sustainable mobility. We understand that being electric is not enough. It's just a starting point.
We have announced a public target of creating a truly climate neutral car that will leave the factory gate with a zero CO2 burden by 2030. We wanted to create a sense of urgency, both internally and externally, and to hold ourselves accountable. When I say Polestar is an industrial leader, I mean it. For example, we are the only car maker to publish full details of the life cycle analysis for the Polestar 2 and for our future cars. This is a simple number that summarizes the full climate impact of a car during its entire life. It allows buyers to compare cars from different manufacturers and make an informed decision. Well, at least they could if other car makers were as transparent. That is why we have publicly urged the rest of the car industry to do the same.
We need a standardized way of measuring and communicating carbon footprint, making it easy for the consumer to compare CO2 emissions, along with price and range. These actions are being noticed by our customers. They see a brand that incorporates the values of our time with direct, active engagement. We are not just building a customer base like the old days, but a community that is growing strongly across our markets. We have talked about our established manufacturing capacity, our cars on the road, our strong brand, and our solid business model. Now the time has come to talk about our future. The product portfolio expansion targeted over the next three years will be the heartbeat of this company. The luxurious Polestar 1 is a collector's item, with a carbon fiber body and the world's longest pure electric range of a plug-in hybrid.
With a price tag of $155,000, it defines the upper price point for the brand. The all-electric Polestar 2 established the entry level for Polestar, starting from around $45,000. It brought to the world the first integration of the Android Infotainment OS, powered by Google, recognized as the new benchmark in the car industry for voice recognition and intuitive interface. Next year, 2022, we plan to launch a major milestone product, the Polestar 3, a luxurious electric performance SUV that we believe will define the way SUVs look in the electric age. Priced in the range of a Porsche Cayenne, it will be our first product with centralized computing, powered by NVIDIA, and with redundant system possibilities. By that, well prepared for the autonomous age.
In 2023, we plan to launch Polestar 4, a sporty SUV coupé priced below the Polestar 3 with a high volume potential. We expect Polestar 5 production to start in 2024 to be on the roads in 2025. The Precept dream come true, the ultimate highlight and pinnacle of our design and technology ramp-up. In short, this is a goal of one car per year for the next three years. These cars are designed and ready to go. Now to summarize, Polestar is up and running and ready to grow. We offer all the benefits of our relationship with an established OEM, combined with the dynamism of a new company. Our cars are on the road and winning awards. Our brand is established and respected.
Polestar stands up for a cleaner planet and is prepared to act to justify these values. Let's look at some of the investment highlights. The global car industry is undergoing its most fundamental transformation of the last 100 years. Polestar is a company that is firmly positioned at the forefront of this transformation. Investment highlight number one, capitalizing on the fastest-growing segments. Polestar operates in some of the fastest-growing segments of the global market, premium luxury EVs. We target that Polestar's product lineup is expected to cover over 80% of the premium luxury market, that our models will sit in the fastest-growing categories, and that with our global presence, we aim to ride on double-digit market growth across the three continents where we are already present today. Polestar is one of only two global premium EV players.
Looking at the broader luxury landscape, only some OEMs sell with an EV P have share above 35%, and only a handful are pure EV players. When you ask which of those sell globally today, the answer is that Polestar and Tesla are the only pure EV players with mass production and an established global reach. Polestar develops its own EV specific technologies like the P10, one of the most powerful electric motors with an outstanding 450 kilowatts, which means over 600 horsepower in a single unit. This top-of-the-line drivetrain is expected to be in all our future products, starting with Polestar 3. Our state-of-the-art 800-volt battery technology is anticipated to be launched in Polestar 5. This is Polestar's own technology developed by some of Europe's best engineers at our two R&D hubs, one in Gothenburg, Sweden, and one in Coventry in the United Kingdom.
This is one of Polestar's core in-house competencies. Combined with the Google entertainment system, we have proven the strong benefit for our customers when we team up with powerful partners. In Polestar 3, we expect to have the technology on board that will enable unsupervised highway piloting by software from Zenseact, the best-in-class long-range lidar from Luminar, and the computing power from NVIDIA. Moving on to investment highlight four, our asset-light model, a key differentiator. Polestar benefit from a light and scalable setup, but it is fortified by the experience and infrastructure resources that the established players, Volvo and Geely, give us access to. Our product portfolio is contract manufactured in state-of-the-art group facilities that are already operating today. Polestar 3, for example, will not only be produced in Volvo's Chengdu plant, but also in Charleston, U.S., building in America for American customers.
This asset-light model makes Polestar an extremely efficient company, using significantly less capital to generate assets and revenue compared to traditional OEMs or EV startups. Investment highlight five, a digital-first direct-to-customer approach. Polestar is directly connected to its customers through their mobile devices. Exploring the brand, the products, configuring, ordering, paying, financing, booking services, all in your hand. Complementing this digital experience, our spaces and destinations in metropolitan downtown areas give customers the opportunity to experience the brand real-time, test drive our cars, and talk to our experts. Polestar service can leverage on the existing Volvo workshop network, giving our customers today more than 500 service points worldwide, targeted to expand to over 800 by 2023. At that point in time, we target to be operative in over 30 markets worldwide. Operating in 30 markets, having over 500 service points and over 150 Polestar spaces.
This is unheard for a brand as young as ours. Investment highlight number six, we have an attractive high-growth financial model with fast volume growth and the plan to achieve a near-term path to profitability and positive cash flow. Let's take a closer look at the financial plan. Over to Nils.
Thanks, Thomas. My name is Nils Mösko, I'm in charge of strategy at Polestar. We started selling cars globally in August 2020, our plan is to grow from almost 10,000 cars in 2020 to 290,000 by the middle of the decade. That growth is based on four pillars. Firstly, the overall market is expected to grow from $1.4 million in 2020 to almost $5 million by 2025. Secondly, our planned product portfolio expansion with two SUVs and the Polestar 5 expected to be introduced by 2024. Thirdly, we plan to expand even further by growing within the existing markets. For example, in the U.S., we aim to expand the retail network from four spaces to around 35 by the middle of next year. Finally, we also expand into new markets.
We are already active in 14 across North America, China, and Europe. As Thomas already mentioned, we target to be operative in over 30 markets worldwide by 2023. Now, what does that mean financially? Well, in terms of revenue development, we expect to go from around $600 million last year to almost $18 billion by mid-decade. Revenue is targeted to be growing faster than volume as we introduce a richer mix. Gross profits should follow the same pattern. In 2023, we expect to reach a gross margin of around 22% with the Polestar 3 volumes coming through, further helped by the introduction of the Polestar 4 and 5 in 2024 and 2025 respectively. Importantly, we plan to EBIT break-even by 2023, with Polestar 3 volumes coming through and us gaining a certain operating leverage.
By mid-decade, we aim to reach a 9% EBIT margin, mainly driven by the core business drivers based on our plans for three new models, growth within existing and new markets, and operating leverage. We also aim to monetize on our in-house developed technology and anticipate to reach cash flow break even by 2024. Importantly and worth reminding, we are investing in growth while benefiting from an asset-light model with significantly lower CapEx needs. We believe our asset-light model will lead to a strong cash generation alongside our continued strong growth and investments. By that, I hand back to Thomas now.
That leaves me to briefly introduce you to our distinct corporate culture, which is designer-led, visionary, and fully committed to sustainability. We have a truly diverse blend of passionate and dedicated leaders, all committed to electrification and sustainability, relentlessly focused in making Polestar a zero-emission company. We are all united in our vision, Polestar, the guiding star in the sustainable era of the automotive industry. With direct consumer business, access to a global manufacturing footprint, and already today, delivery to thousands of customers. We are already today performing over-the-air software updates across Europe, China, and the U.S., and we plan to launch three new cars by 2025, one each year. Not something seen by any other startup. This is the success formula of Polestar. Mark, I will now pass it back to you to discuss valuation and for closing remarks.
Thank you, Thomas. Turning our attention back to the transaction summary. Gores Guggenheim is bringing approximately $1.05 billion in equity proceeds to the transaction, comprised of approximately $800 million in trust and approximately $250 million in a fully committed PIPE. 100% of the net proceeds delivered in the transaction will be going to Polestar's balance sheet to fund its business plan, largely going towards new model development and launches. We are bringing Polestar public at an approximately $20 billion fully diluted enterprise value, representing a 3x 2023 estimated revenue multiple. Existing Polestar shareholders will hold approximately 94% of the company post-close. Turning ahead to the next two pages, in terms of comps, Polestar and Tesla are the only two pure-play EV OEMs with a global presence that are manufacturing and selling cars today.
Separate from Tesla, Polestar is the only EV OEM that expects to have two SUVs on the road by the end of 2023, covering the overwhelming majority of the premium luxury SUV market. Polestar stands apart from all other comps with its asset-light model, which we believe will deliver industry-leading capital intensity and return on asset metrics. We are bringing Polestar to market at a very attractive entry valuation, providing investors a 260% upside to Tesla's 2023 revenue multiple and a 115% upside to Lucid's 2023 multiple. We have included Lucid given its focus on the luxury market and projected high growth forecast, despite its capital-intensive business model and lack of mass production or global presence today. The other two players are, for reference, in our view, less relevant given they are regional players focused on the Chinese market.
Please stay tuned as Gores Guggenheim will file a definitive proxy statement in connection with the proposed business combination with the SEC, which will be mailed with other relevant documents to its stockholders. The proxy statement will contain important information about the proposed business combination, which is subject to the approval of Gores Guggenheim stockholders, and we anticipate the transaction will close in the first half of 2022. If you have any questions, please reach out to our advisors on the transaction. Thank you again for your time today.