- Gores Guggenheim stock is stable and needs a catalyst event.
- GGPI will take Polestar public via the SPAC deal.
- GGPI stock is due to trade under ticker PSNY after the SPAC deal.
Gores Guggenheim's (GGPI) stock remains in a holding pattern as investors remain cautious about the lesser known EV maker. This appears to be largely a case of an unknown identity as it lags other EV makers in terms of brand awareness and stock awareness among US investors. This may be because Polestar is a Swedish EV maker and so is currently more visible in Europe. The company did attempt to change that with a noted Super Bowl ad, taking a dig at Tesla (TSLA) in the process.
Gores Guggenheim is due to take Polestar public via its SPAC deal this year. Polestar as mentioned is a Swedish EV maker with Volvo as the main backer. Volvo itself is owned by China's Geely, and so Polestar has backing here too. This makes it more well-established. The company will piggyback on Volvo's existing manufacturing capabilities to avoid the need for massive investment in manufacturing plants. This gives it an edge over other competitors such as Mullen Automotive (MULN), Lucid (LCID) and Rivian (RIVN) in our view.
Gores Guggenheim Stock News
Polestar currently has two models available, the Polestar 1 and Polestar 2. Both are sleek and Scandinavian-looking with sleek elegant lines. Build quality appears sound. With Volvo's expertise it should be. At the last investor day, Polestar said it aims to be profitable by 2024, which is likely much sooner than other start-up EV makers.
With the backing and scale from Volvo's manufacturing plants and Geely in China, it seems well-positioned to avoid supply chain issues and scale that have recently hit valuations of other EV carmakers. This looks to be a better bet with a more stable future, so why the relative underperformance then? The stock has barely moved from the $11-$12 range for the past six months. Some of this is pure ignorance of the Polestar model as it is yet to be seen in the US. The Superbowl ad attempted to change this and did result in a big price spike, but it did not hold as markets turned lower across the board.
Gores Guggenheim Stock Forecast
With $10 as a fallback, any purchases near that level at least give some form of protection. SPACs keep $10 in cash to return to shareholders in the event of the deal not proceeding, so there is a level of comfort here. The SPAC deal is due for completion in the first half of this year, but no firm date has been set. Once this is done it may begin to see interest grow.
GGPI stock chart, daily
The author is long GGPI stock.
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.
Recommended content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.