- GGPI stock closes up on Thursday as the Polestar deal goes through.
- Polestar will begin trading from June 24 on the Nasdaq under the ticker PSNY.
- Polestar is an EV startup spun out of Volvo and Geely.
UPDATE: Polestar Automotive stock is down 11% to start its history under the new ticker PSNY. Its merger received approval from shareholders of its SPAC, GGPI, earlier this week, and now those holding GGPI shares had them converted to PSNY at the start of the session. At the time of writing one hour into Friday's session, PSNY is trading down 11.1% at $11.53 despite the Nasdaq advancing an impressive 2.7%. More than 6 million shares have traded in the first hour of the session.
Gores Guggenheim (GGPI) stock is no more from Friday, June 24, as the SPAC deal with Polestar has been completed. GGPI stock had it last day of trading on Thursday and finished on a positive note as it closed up 3.6% at $11.23.
Gores Guggenheim Stock News: Polestar deal completed
The SPAC deal to take Polestar public has been completed. GGPI shareholders were asked to vote on the deal by June 22 and as expected the merger was approved.
Polestar has raised in the region of $890 million from the deal completing.
In a press release, Thomas Ingenlath, CEO of Polestar, said: “Listing on the Nasdaq is an incredibly proud moment for Polestar. We set out to create an outstanding new EV brand with the mission to accelerate the shift toward sustainable mobility. With 55,000 cars on the road today, and global recognition as made evident by over 100 awards, we have built a strong foundation for future growth. We are now expanding our product range with three new premium electric models, including two SUVs, by 2024. The first, Polestar 3, a full-size electric SUV, will launch in October 2022 and sets a new standard in this high margin, premium segment."
This deal comes at the tail end of a SPAC frenzy in 2020 and 2021 that has seen the number of SPAC deals fall off a cliff, so it was an achievement in itself to get to the finish line. Polestar has ambitious plans and is set to launch its first SUV in October 2022. SUVs are the highest margin vehicles in the auto sector and thus remain pivotal to profitability. That is why it is odd that Tesla (TSLA) has not pushed its own SUV harder in my opinion. Polestar has some distinct advantages over other EV makers. It will be able to leverage Volvo's network using manufacturing, and we believe service networks, while building its own sales network. The company has been increasing its visibility in the US and with Geely Group will also target the Chinese market as it again uses Volvo's manufacturing plant in China.
Polestar stock news
Friday is the day when Polestar will officially begin trading under the ticker PSNY. Polestar will ring the bell on the Nasdaq on June 28 to celebrate the achievement.
Polestar stock forecast
Now the long road ahead begins. I have previously been long GGPI but cut the position during the recent downturn. I remain a fan of the cars, but with the macroeconomic situation changing, I am not so positive on the auto space currently. With an imminent global recession, consumers will scale back purchases and move to lower cost options.
GGPI chart, daily
The author is short Tesla.
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