The opinions expressed in this article are those of the writer, subject to the, Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term, Biden Hears Oval Office Plea for Alaska Oil Project in Lobbying Frenzy, Apple tops ranking of global companies with the most 'green' revenue, UPDATE 2-North Korea says UN should demand end to S.Korea-US military drills, US Treasury puts cost of outbound investment risk program at $10 million, US Jobs Report and Powell Testimony Take Center Stage: Eco Week. Written by The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. However, for now, it seems to have its feet on the ground, providing investors with very reasonable growth projections. This news follows the September announcement of Polestar's intention to list on Nasdaq in connection with its proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in the first half of 2022. On July 8,. Higher interest rates aren't deterring companies with high credit ratings from borrowing in the U.S. corporate bond market at a record clip in 2023. As a result, Geely owns 50.5% of Polestars equity while Volvo owns 49.5%. What's next for bonds in 2023 after the worst year in history, It broke me: Everyone says you need power of attorney, but nobody tells you how hard it is to use. Again, such middling performance could carry on, before and after the deal closing. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. As a result, I think its chances of survival are much higher than brands such as, On the date of publication, Will Ashworth. Around the same time as my article, fellow InvestorPlace contributor Chris Tyler argued that technical analysis of the stock suggested the beginning of December wasnt the time to buy either. 7 Tech Stocks Worth Snatching Up After Their Tumble. On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Polestar touts an asset-light business model as a key differentiator by having existing productions lines provided by backers Volvo and Geely, so it can focus on investing in research. With all that said, your question is between taking the risk of GGPI tanking after merger vs maybe missing out a huge chunk of gains. If you owned common stock in the Company and wish to obtain additional information and protect your investments free of charge, please visit our website or contact Juan E. Monteverde, Esq. As we move into the merger vote, we think GGPI should be trading closer to $20. Joel Baglole for After a bustling 2021, the entire SPAC market has slowed markedly amid theglobal marketdownturn. We continue to like Polestars long term outlook and view the company as an emerging contender in the EV space. We want to hear from you. Shares of GGPI are down a little over 2% as of this writing. I share my. Cision Distribution 888-776-0942 Lastly, the fact that Ingenlath doesnt want to be something to everyone suggests that he fully understands Polestars target market. Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia. These symbols will be available throughout the site during your session. Polestar have confirmed the previously rumoured SPAC merger with GGPI bringing the EV manufacturer to the NASDAQ with a valuation of $20 billion. Its beginning dates back to. It may not be until the supply chain issues are resolved. Nevertheless, even as EV stock mania has waned, the EV trend isnt going away. At the end of November, I argued that GGPI stock was a better buy for aggressive investors than, f a stock is destined to be a long-term winner (five to 10 years out), there is no rush to run out and buy it. But its a very different market now, amidst a more tepid outlook for growth stocks. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. Yet while its made this major progress, its not resulting in a big move for shares. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. Last year, a record 613 SPAC listings occurred on U.S. exchanges, raising a total of $145 billion. It will also have a more daring design,, The CEO came out and said Polestar wasnt going to be, As I stated in January, I think GGPI stock soon to be. Initial orders are for the Polestar 2 sedan. The company's listing plan comes as automakers shift their focus to environmentally friendly vehicles amid rising pressure from lawmakers and investors concerned about climate change. Enthusiasm about the deal, which was announced last fall, has seen a big drop in recent months. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds for the purpose of effecting a merger, capital stock exchange, asset. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way. did not have (either directly or indirectly) any positions in the securities mentioned in this article. We earn $400,000 and spend beyond our means. Novembers SPAC market review paints a picture of a SPAC market rushing towards the exit with high, and accelerating liquidations, more deal terminations, and almost no new SPAC IPOs. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Gores has done as good a job as anyone demonstrating that blank-check companies can deliver the goods. Create your Watchlist to save your favorite quotes on Nasdaq.com. $GGPI $PSNY @Polestar introduces Tech and Design updates on Polestar 2 The battery is improved increased cell chemistry that provides a higher capacity -This leads to increased range,faster charging, and higher motor output in addition to the design element changes listed in the article For the company going public, a SPAC merger serves as an alternative to a traditional IPO. Under the terms of the agreement, GGPI shareholders will retain less than 6% ownership of the combined company. Si quieres personalizar tus opciones, haz clic en Gestionar configuracin de privacidad. GGPI Stock Price - Gores Guggenheim, Inc. is a blank check company. The merger between Polestar and Gores Guggenheim (NASDAQ:GGPI) is expected to happen in the first half of 2022. Also, dont base a decision to buy or not just on a surface level view of the company. All quotes delayed a minimum of 15 minutes. He was right. At $11.20 it's $24 billion. The technical storage or access that is used exclusively for statistical purposes. Our firm's recent successes include changing the law in a significant victory that lowered the standard of liability under Section 14(e) of the Exchange Act in the Ninth Circuit. Still, I wouldnt view this as a reason to dismiss it as an investment opportunity. The company is an established EV maker outside the U.S. but not headquartered in China. Banking giant TD still wants to buy First Horizon a year after megadeal was announced, but the purchase price may drop, given lower sector valuations. either via e-mail at [emailprotected] or by telephone at (212) 971-1341. You might even get a better price in the process.. The critical distinction about Polestar is that its not a startup. with the special purpose acquisition company (SPAC) on Sept. 27, GGPI stock has gained about 14% or so. Todays announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. On May 25, the blank-check company formally announced the date on which shareholders will vote to approve the transaction (June 22). We can put the money raised into developing the technology and the market," Thomas Ingenlath, Polestar's chief executive, said in an interview. Intraday Data provided by FACTSET and subject to terms of use. If you own the shares of the EV maker already, dont worry about its poor performance recently, I wrote in January. The company, which delivered about 10,000 vehicles last year, said it expects to sell about 290,000 vehicles per year by 2025 and plans to launch three new models by 2024. Inc. ("GGPI" or the "Company") (GGPI)a special purpose acquisition company, relating to the proposed merger with Polestar Automotive Holding Limited. Cookie Notice (). An alternative to Tesla. proporcionarte nuestros sitios y aplicaciones; autenticar usuarios, aplicar medidas de seguridad y evitar el spam y los abusos, y. medir el uso que haces de nuestros sitios y aplicaciones. ET It has been over a month since the rumor started floating that the SPAC Gores Guggenheim (GGPI) could merge with premium EV manufacturer Polestar. However, over a longer timeframe, it could zoom to price levels well above $20 per share. Despite being outside the top 10, its a reasonable amount of exposure. 1125 N. Charles St, Baltimore, MD 21201. All rights reserved. In fact, as its already reached the billion dollar mark in terms of sales, calling it early stage may be a misnomer. Even as the Polestar deal, which shareholders will vote to approve later this month, is on the verge of closing. Join the Conversation! Both stocks are thinly traded over the counter. Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. Then I realized it was just a survey. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. From the day the Polestar 1 was launched, I have been a fan of the brands designs. Critics of the practice include Warren Buffett. Therefore, it might make sense to buy now before the merger, rather than afterwards. Sure, its excellent that Polestar plans to be sportier, more focused on the driving experience, than it does on being a luxury ride, but these particular words didnt move me. Comprehensive research and analytics on every SPAC, sponsor, and deal. It formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. However, I also said that investors need not rush to buy the SPAC before the merger happens. At the end of November, I argued that GGPI stock was a better buy for aggressive investors than Rivian (NASDAQ:RIVN) in the long term. Press question mark to learn the rest of the keyboard shortcuts. In a media statement, Gores Guggenheim confirmed that its shareholders voted to approve the combination with Polestar which will bring the European EV maker to the public market. None of the information contained in this reportconstitutes, oris intended to constitute a recommendation by Boardroom Alphaofany particular security or trading strategy or a determination by BAthat any security or trading strategy is suitable for any specificperson. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). Barring unforeseen developments, Polestar ought to deliver considerable wealth to its patient shareholders in the future.. Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ:GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. Right now investors are paying. February 28, 2023. GGPI Stock Heats Up as Polestar SPAC Merger Closes, Do Not Sell My Personal Information (CA Residents Only). Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers. Place to discuss GGPI and Polestar. Today's announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds . I think this stock may continue to trade in the low teens until the de-SPAC merger happens in 2022. Polestar / Gores Guggenheim Inc.(GGPI) made a splash this morning, announcing a partnership with Hertz (HTZ) that includes purchasing up to 65,000 electric vehicles (EVs) over five years. Matterport merged with Gores Holdings VI back in July and Gores brought $310 million in cash to the deal after redemptions. In 2015, Volvo acquired Polestars high-performance business. Rubicon Technologies (RBT) CEO Jevan Anderson resigned, Marblegate is merging with itself, and the rest of the days digest. Polestar joins other EV makers in the public market, including Tesla (TSLA.O) and Lucid Motors (LCID.O), which went public in a $24 billion SPAC deal in February. No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Once the reverse merger is finalized, shares of Polestar will begin trading on the Nasdaq tomorrow under the PSNY ticker symbol. GGPI hasn't announced a definitive merger date with Polestar but the two companies expect to complete the business combination in the first half of 2022. Will Ashworth has written about investments full-time since 2008. Currently, this stock earns a B rating in my Portfolio Grader. The higher the price point, the easier it is to pull off. Mr. Monteverde is recognized by Super Lawyers as a Rising Star in Securities Litigation in 2013, 2017-2019, an award given to less than 2.5% of attorneys in a particular field. Boardroom Alpha does not accept any liability for any direct,indirector consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed. At least two hedge funds sold their stakes in Digital World Acquisition Corp. after that SPAC firm announced plans to merge with former President Donald Trump 's planned social media platform.. He particularly enjoys creating model portfolios that stand the test of time. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. In fact, he should be used by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler as an example of the good accomplished with blank-check names. Banjo player, artist, and frittata-maker. The latest deal will provide a key test of investor appetite for SPAC deals after other such transactions in the electric vehicle sector soured over the past few months. , including Geely at a 3.22% weighting. Under the terms of the agreement, GGPI . Post merger, the combined company will be named Polestar Automotive Holding UK Ltd. and will trade under the symbol "PSNY" on the Nasdaq. However, thats an entirely different subject than whether you should buy GGPI at todays prices. Thats especially the case with GGPI stock. The technology is used widely in the vacation rental industry. . If youre investing in AI stocks, watch out for these revenue and earnings tricks, After loss against Meta, Lina Khans ability to rein in Big Tech with the FTC is being questioned, Veris Residential and Rogers Stock See Action From Activist Investors, The U.S. housing market is crumbling under the weight of higher mortgage rates and rock-bottom affordability: Prices fell the most in these U.S. states, Am I crazy? After my mother died, my cousin took her designer purse, and my aunt took 8 paintings from her home then things really escalated. Prior results do not guarantee a similar outcome with respect to any future matter. The transaction is expected to close in the first half of the year. At writing, its at $9.97 per share, just a penny above its debut price. GGPI shares have been trading in a steady ~$11 range prior to day's announcement (shares are up 8% intraday). GGPI shares have been trading in a steady ~$11 range prior to days announcement (shares are up 8% intraday). Owner Earnings per Share (TTM) explanation, calculation, his The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Even if its an SUV such as the Polestar 3, it will have a sleek silhouette, meaning there will be less emphasis on cargo space and more emphasis on propulsion. 2023 InvestorPlace Media, LLC. Investors still bullish on EV stocks can purchase shares of Polestar once PSNY stock starts trading tomorrow morning. About the Car Design Award. So far this year, there have only been 11 SPAC listings valued at $25 million or more. PublicSq. This particular EV play is appealing for two reasons. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Twitter Reports 40% Drop in Revenue and Adjusted Earnings to Investors: WSJ. Sign up for free newsletters and get more CNBC delivered to your inbox. Enthusiasm about the. Sept 27 (Reuters) - Swedish electric-car maker Polestar said on Monday it will go public by merging with a U.S.-listed blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at an enterprise value of $20 billion.
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