Gores Guggenheim Stock News and Forecast: GGPI rebounds to test $11.50 on Polestar merger completion


  • Gores Guggenheim voted on Wednesday to take Polestar public.
  • Polestar will list under the ticker PSNY on the Nasdaq and start trading on June 24.
  • GGPI stock rose3% on Thursday and settled above $11.00 per share. 

Update: The Gores Guggenheim (NASDAQ: GGPI) stock price staged sharp recovery and tested the $11.50 barrier before retreating slightly to end Thursday at $11.23, still 3.60% higher on the day. Investors sold off the stock price heading into the company’s merger with Polestar SPAC, although picked up fresh bids on the completion of the proposed merger. Polestar will now make its debut on Nasdaq under the ticker "PSNY" as soon as later this week. Industry experts believe, “GGPI remains attractive at current levels, considering Polestar's growth prospects buoyed by key near-term catalysts.” Markets also cheered the day 2 of Fed Chair Jerome Powell’s testimony testified before the House Financial Services Committee on Monetary Policy and the State of the Economy. Powell remained confident on the economic growth, despite reiterating that recession fears could be “very challenging" to ensure a smooth landing.  

Gores Guggenheim (GGPI) stock merger with Polestar looks set to debut on the Nasdaq on Friday under the ticker PSNY. The vote to take Polestar public via a SPAC deal took place on Wednesday, and it is anticipated that the vote carried through. In anticipation of a positive outcome, GGPI stock rallied 12% on Wednesday to close at $10.84.

Also readTesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries

GGPI stock news

Polestar is a spin-off from Volvo and its Chinese backer Geely. Polestar will be a fully electric vehicle manufacturer and will utilize existing Volvo networks to scale its operations. Polestar will use Volvo's manufacturing plant in South Carolina as well as other sites in China. The cars will compete in a similar segment to Volvo, that of the luxury car sector toward the top of the market.

Polestar was relatively unknown in the US until a cheeky Superbowl commercial, in which it took a swipe at Tesla, increased its brand awareness. This was then added to when Polestar and Hertz (HTZ) announced a deal in April for Polestar to supply up to 65,000 EVs to Hertz over five years. Those deliveries are now commencing.

"We’re excited to add this first delivery of Polestars to our fleet, expanding the opportunities for Hertz customers to enjoy the experience of driving an electric vehicle," says Darren Arrington, executive vice president of revenue management and fleet acquisition for Hertz.

The SPAC deal to take Polestar public will raise close to $850 million and comes at a challenging time for EV stocks and the broader stock market in general. Polestar has plans to launch its first EV, the Polestar 3, this fall in the US. 

GGPI stock forecast

A sudden spike in volatility has seen a recovery in advance of the merger vote being passed. The EV space is challenging and getting more difficult to trade. I have been long GGPI stock for most of 2022 but cut the position when markets turned sharply lower. My overall view on the EV space remains challenged given the macroeconomic conditions, supply chain issues, and geopolitical tensions. I do like Polestar for the long term, but it faces a long, rocky road ahead. 

Technically, $12 is a high-volume resistance area. This news has been a recent catalyst, but the stock may quiet down once the news flow returns to normal. 

GGPI stock chart, daily

Previous updates

Update: GGPI ended Thursday at $11.23 per share, up 3.6%. Wall Street managed to change course ahead of the close and finished with gains after a soft start to the day. The Dow Jones Industrial Average added 194 points, while the S&P 500 added 0.95%. The Nasdaq Composite was the best performer, up 1.62%. The market mood soured ahead of Wall Street's opening, following the release of the flash S&P Global PMIs, which showed a generalized economic slowdown at the end of the second quarter. The manufacturing and services indexes mostly missed the market's expectations in Europe and the US although they remain in expansion territory. 

At the same time, US Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee on Monetary Policy and the State of the Economy. Fed’s head said that a big part of inflation won’t be affected by the central bank’s tools, although another part will be. On a positive note, he added that growth this year should still be fairly strong, but his comments clearly reflect concerns about inflation and growth, as he repeated that it would be  "very challenging" to ensure a smooth landing.  

Update: GGPI shares are strangely unenthused by the official merging of the SPAC with Polestar. GGPI shares have lost 3% in the first leg of trading on Thursday. Shares are down to $10.52 at the time of writing. This is happening even as the Nasdaq has gained 0.9% in another decent day for the week. GGPI officially merges with the Chinese-owned, Swedish-headquartered EV manufacturer tomorrow and will from then on trade as PSNY, which is why shares advanced 12% on Wednesday. Now it seems that investors are paring gains after the quick run-up. "The listing on the Nasdaq will help Polestar achieve its plans for rapid growth, anchored by its key values of design, innovation and sustainability," said the companies in a joint press release this morning. "With two award-winning cars on the road in 25 markets, Polestar plans to increase sales volumes tenfold from approximately 29,000 cars in 2021 to 290,000 in 2025."

The author is short Tesla.


Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD rebounds, steadies above 1.0400

EUR/USD rebounds, steadies above 1.0400

EUR/USD has staged a rebound and reclaimed 1.0400 during the American trading hours on Friday with the US Dollar Index retreating from the multi-week high it set at above 105.60. Nevertheless, the pair remains on track to close the week in negative territory. 

EUR/USD News

GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD reversed its direction and advanced to the 1.2050 area after having dropped to 1.1976 earlier in the day. The pair is still down more than 1% on the day with safe-haven flows dominating the financial markets following the disappointing PMI data from the US.

GBP/USD News

Gold rebounds above $1,800 as US yields fall sharply

Gold rebounds above $1,800 as US yields fall sharply

Gold has regained its traction and recovered above $1,800 after having slumped to a multi-month low below $1,790. Following the dismal PMI data from the US, the benchmark 10-year US Treasury bond yield is down more than 6% on the day, fueling XAU/USD's rebound.

Gold News

Why traders are rushing to exit positions on Cardano’s ADA price

Why traders are rushing to exit positions on Cardano’s ADA price

Cardano (ADA) price has had its performance review as the summer kicks off. ADA bulls are returning home with not-that-good a scorecard, and the underperformance could cut short holiday funding for the cryptocurrency.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures