Gores Guggenheim (GGPI) Stock News and Forecast: Polestar stock trends after Superbowl ad

Polestar stock was one of the most searched for terms after the Superbowl ad that hyped interest in the electric vehicle maker. As of yet though, Polestar stock is not quite up and running as the company is set to go public via a SPAC deal with Gores Guggenheim (GGPI) stock. Polestar is already reasonably widespread in Europe, where backer Volvo would have its traditional base. Polestar cars also appear to focus on similar Scandinavian design features with a sleek minimalist, almost architectural feel. 

Gores Guggenheim Stock News

We should probably call this "Polestar stock news" as that is what many are now focusing on, but regardless the company certainly achieved its aim with the Superbowl advertisement. The company is entering a crowded electric vehicle space with sector leader Tesla (TSLA) as well as recent hot stocks Lucid Group (LCID) and the hottest IPO of them all last year, Rivian (RIVN).

What is most interesting is the potential for an immediate rollout sales network as we expect Polestar to piggyback on the Volvo distribution network. This does give it an advantage over Rivian (RIVN) and Lucid (LCID). Both Lucid and Rivian will have to build out their sales networks. This is not confirmed, but the tie-up looks obvious. Already Polestar said in the UK it will use Volvo's service network and that in the US Polestar will make electric SUVs at Volvo's South Carolina Plant. Production is expected to begin in the second half of 2022.

Gores Guggenheim Stock Forecast

GGPI stock naturally has a base of support at $10. Most SPACs have a cash floor of $10. Usually, each SPAC share is redeemable for $10 in cash, hence the floor. SPAC deals have calmed somewhat since the Lucid frenzy last year, which saw the shares spike up to nearly $60 before halving over the next few months.

Retail investors have taken the time to better understand how SPAC deals work as well as a market meltdown, meaning high growth stocks such as Lucid were repriced. GGPI has had notable spikes itself but nothing as dramatic. It spiked in November on the back of the huge interest in Rivian as all EV makers saw strong retail investor interest. Technically, there is not much to see here. $10 is obvious cash support, and the resistance is at $12. The SPAC deal is expected to complete in the first half of this year.

GGPI chart, daily