Yet if youve done your research, and are bullish on the future prospects of this promising EV play, consider GGPI stock a buy. Shares of Gores Guggenheim pared some earlier gains and were up over 4% in morning trading. The deal comes at a time when large SPAC mergers have become rare, as the business of blank-check dealmaking deteriorated rapidly over the summer after investors were spooked by the poor financial performance of many SPACs and a regulatory crackdown led by the U.S. Securities and Exchange Commission over their disclosures. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. For this, if youre very aggressive, Id suggest taking a half position today and waiting to see if it falls lower. Under the terms of the agreement, GGPI . Will Ashworth has written about investments full-time since 2008. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Plus500. 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. Still think GGPI is undervalued. Polestar, founded in 2017 by Volvo Car Group (VOLVb.ST) and China's Zhejiang Geely Holding (GEELY.UL), also counts Hollywood actor Leonardo DiCaprio among its investors. Nordstrom says it will end its business in Canada to help shore up profit after reporting weaker-than-expected sales results and forecasts. Instead, it would be a niche producer of EVs. Nasdaq $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 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. Enthusiasm about the. quotes delayed at least 15 minutes, all others at least 20 minutes. GGPI: Gores Guggenheim, Inc. Class A: $0: 10/25/2021: On 9/27/2021 the company announced a pending merger with Polestar Automotive, a global pure play, premium electric vehicle ("EV") company based in Sweden. from 8 AM - 9 PM ET. If you havent bought it, thats great news because you still have time to get in before GGPI takes off post-merger. PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. It will also have a more daring design, InsideEVs reported Ingenlaths comments. As a result, I think its chances of survival are much higher than brands such as Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN). Place to discuss GGPI and Polestar. Copyright Volvo said on Monday it will make additional equity investments in Polestar of up to $600 million and is expected to hold about 50 percent of the combined company. The SPAC merger deal was announced on Sept. 27, where GGPI SPAC agreed to merge with the Swedish private EV car maker Polestar. Instead, get to know the company a little better. Copyright 2023 InvestorPlace Media, LLC. Its beginning dates back to. As a result, I think its chances of survival are much higher than brands such as, On the date of publication, Will Ashworth. Its beginning dates back to 1996. Press J to jump to the feed. That company provides digital twins of properties. After a bustling 2021, the entire SPAC market has slowed markedly amid theglobal marketdownturn. I share my. Nordstroms off-price Rack stores are struggling. Based on a $49K starting price, the deal is valued at ~$3.2B. Polestar said at the Beijing Motor Show last year that it has another model in development called the Precept, which is a larger sedan. 5 Penny Cryptos With the Most Potential for Growth, 3 Cream-of-the-Crop Growth Stocks to Buy for 2023, Gores Guggenheim Stock Will Pop Post Merger, But Theres Still Time to Buy. Because if it runs as Polestar it will do so premarket. Since the Swedish electric vehicle (EV) manufacturer announced its merger with the special purpose acquisition company (SPAC) on Sept. 27, GGPI stock has gained about 14% or so. in July and Gores brought $310 million in cash to the deal after redemptions. The Gravity performance luxury SUV is expected to come to market in North America in 2023. Assuming a post-merger tally of approximately 2.15 billion shares, a stock price of $20 on GGPI equates to a $43 billion market cap. In the six weeks since, its moved sideways. The merger between Polestar and Gores Guggenheim (NASDAQ:GGPI) is expected to happen in the first half of 2022. Transaction is expected to be completed in the second quarter of 2022. So naturally, theCEO had a lot to say on the subject. Polestar has been developing electric vehicles since 2017, the latest of which is a performance roadster. It predicts it will rake in $1.6 billion in revenue this year and double that number next year. Second, it currently trades at an attractive valuation relative to its prospects. However, because Geely owns 78.4% of Volvo Cars stock not to mention nearly 97% of its voting power Polestar will ultimately be controlled by the Chinese car company and billionaire Li Shufu, the worlds 52nd wealthiest person. The partnership with Polestar builds on Hertzs announcement last October to offer its customers the largest EV rental fleet in North America and one of the largest in the world. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. Ends. AONs Aria Glasgow on Managing ESG and Human Capital Risk, Korn Ferrys Anthony Goodman on the Importance of Board Evaluations, Podcast: Getaround CEO Sam Zaid on Carsharing and Going Public, What to Know about Universal Proxy with Bruce Goldfarb of Okapi Partners, Podcast: Li-Cycles (LICY) Ajay Kochhar on Lithium Ion Battery Recycling and EVs, SPAC Podcast: Alliance Entertainment & Adara Acquisition. But no matter when exactly the recovery begins, it may be worthwhile to lock down positions before it happens rather than after it happens. (C) 2021 Monteverde & Associates PC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, butBoardroom Alphacannot guarantee its accuracy and completeness, and thatofthe opinions based thereon. Will Ashworth has written about investments full-time since 2008. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. The premium EV maker's offering includes two models a hybrid performance car known as Polestar 1 and a fully electric Polestar 2 which are currently on roads across Europe, North America and Asia. Puedes cambiar tus opciones en cualquier momento haciendo clic en el enlace Panel de control de privacidad de nuestros sitios y aplicaciones. It is the biggest blank-check merger in the EV sector since Lucid Motors struck a $24-billion deal with Michael Klein's Churchill Capital IV Corp. in February. Get this delivered to your inbox, and more info about our products and services. All rights reserved. Lifes a beach for this Florida FIRE couple, Cant take statins? Market is a lot different now versus CCIV/LCID times. An alternative to Tesla. While its debatable how much of a deal pop well see on close, the fundamentals here are whats most important. New pill cuts cholesterol, heart attacks, Seniors:Heres an easy wayto cut your risk of a heart attack or stroke by nearly 80%. 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. 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. The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. Do this now. For Hertz, the partnership builds on the companys ongoing commitment to lead in electrification and shared mobility. Colombier was founded by Omeed Malik, founder and CEO of Farvahar Partners. Our Standards: The Thomson Reuters Trust Principles. It may not be until the supply chain issues are resolved. Despite being outside the top 10, its a reasonable amount of exposure. In December, its currently down almost 16%. I entered GGPI and will increase my position tomorrow tho. As I stated in January, I think GGPI stock soon to be PSNY once the merger is completed is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025. Don't take it as financial . This relationship gives Polestar access to manufacturing in Chinas as well as facilities in Europe and the U.S. Geely has a 2022 target of 1.65 million vehicles. The company is headquartered in Sweden but manufactures its EVs in China. The investigation focuses on whether GGPI and its Board of Directors violated securities laws and/or breached their fiduciary duties to the Company by 1) failing to conduct a fair process, and 2) whether the transaction is properly valued. read more. EQT Buys Majority Stake in South Korean Security Provider SK Shieldus, Nagarro 4Q Ebitda Rose; Backs 2023 Outlook, SFS Group 2022 Sales Rose Boosted By Hoffman Acquisition, Ipsen Completes Acquisition of Albireo Pharma. The focus was entirely on internal combustion-powered vehicles. Its opening more of them anyway. Prior results do not guarantee a similar outcome with respect to any future matter. 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. Anywhere in between makes it harder to gain customer loyalty. This morning, shares of Gores Guggenheim (NASDAQ:GGPI) stock started the day up 5% on news that shareholders have approved its merger with Swedish electric vehicle maker Polestar. Matterport merged with Gores Holdings VI back in July and Gores brought $310 million in cash to the deal after redemptions. 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. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Got a confidential news tip? Sign up below to get this incredible offer! Oklahoma's governor set a special vote for March 7 after a pot referendum was pulled off the November ballot, and in Pennsylvania, a lawmaker launched new bill. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. The Company has selected December 31 st as its fiscal year-end. Last year, a record 613 SPAC listings occurred on U.S. exchanges, raising a total of $145 billion. 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. Polestar is a Swedish electric vehicle manufacturer backed by Volvo and Volvo's de facto . Therefore, it might make sense to buy now before the merger, rather than afterwards. That said, unlike LCID, which was a pre-revenue, pre-production company, Polestar is very much established, having met its production target of 29,000 cars in 2021. 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.. 1125 N. Charles St, Baltimore, MD 21201. This announcement comes alongside ongoing Over-The-Air (OTA) updates that are delivering new features to Polestar 2 owners and pre-empts a future option to purchase a performance software upgrade that adds an extra 67-hp for the dual-motor variant. See here for a complete list of exchanges and delays. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. The technical storage or access that is used exclusively for anonymous statistical purposes. He particularly enjoys creating model portfolios that stand the test of time. As a result, Geely owns 50.5% of Polestars equity while Volvo owns 49.5%. American Airlines (AAL) announces its new chairman of the board as Gregory D. Smith, the former CEO of Boeing (BA). See here for a complete list of exchanges and delays. In what stands to be a pivotal year for the future of the market, we recap January. Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ: GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. GGPI / Polestar trades higher on HTZ deal . The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Data is a real-time snapshot *Data is delayed at least 15 minutes. An analyst thinks theres a good chance that PayPal will make an acquisition in the next few months and runs through the most likely -- and least likely -- scenarios. Anticipation on GGPI/Polestar merger. 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. At the time of this writing, the stock is down 2.83% on the day, closing in on $11. Lastly, the fact that Ingenlath doesnt want to be something to everyone suggests that he fully understands Polestars target market. Of course, shares of many EV companies are down this year, including market leader Tesla (NASDAQ:TSLA). Ingenlaths comments in Automotive News laid out Polestars three-pronged production plan for China, South Carolina and Europe. However, for now, it seems to have its feet on the ground, providing investors with very reasonable growth projections. Cision Distribution 888-776-0942 However, over a longer timeframe, it could zoom to price levels well above $20 per share. As the deal approaches a close, GGPI shares have formed a solid base of support. The factors still affecting EV stock performance could carry on in the months ahead. Although its unclear whether it zooms or sits idle in the near-term, over a longer timeframe it could really take off. The company is an established EV maker outside the U.S. but not headquartered in China. Provided by Benzinga Since. In other words, hes saying if you buy a Polestar, youll be getting something unique and special. Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia. 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. 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. Its anyones guess when exactly EV stocks will take off again. Once the deal is completed, Polestar will trade under the ticker symbol PSNY on the Nasdaq. However, according to Volvo, only 100 were made in the initial year. Comprehensive research and analytics on every SPAC, sponsor, and deal. Polestar itself is a joint venture between Volvo (OTCMKTS:VLVLY) and Geely (OTCMKTS:GELYY). Despite being outside the top 10, its a reasonable amount of exposure. In fact, as its already reached the billion dollar mark in terms of sales, calling it early stage may be a misnomer. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. He was right. However, what he said next did. Source: Jeppe Gustafsson / Shutterstock.com. LOS ANGELES & GOTHENBURG, Sweden, June 21, 2022 -- ( BUSINESS WIRE )--Gores Guggenheim, Inc. ("Gores Guggenheim" or the "Company") (NASDAQ: GGPI, GGPIU and GGPIW), a special purpose acquisition. Rubicon Technologies (RBT) CEO Jevan Anderson resigned, Marblegate is merging with itself, and the rest of the days digest. At least, based on its success so far, and on future projections. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. DWACW (Digital World Acquisition) Owner Earnings per Share (TTM) as of today (March 02, 2023) is . We are a national class action securities litigation law firm that has recovered millions of dollars and is committed to protecting shareholders from corporate wrongdoing. Banjo player, artist, and frittata-maker. Its a New Era for Tech Stocks. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. A recovery may not happen until the market has absorbed the changes in economic and market conditions. did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Theres even room for more lines. 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. These symbols will be available throughout the site during your session. either via e-mail at [emailprotected] or by telephone at (212) 971-1341. Historical and current end-of-day data provided by FACTSET. But there is reason to believe that quality, well-run EV companies like PSNY will survive and thrive in the years ahead. As reference, LCID, which is still in early production, trades at ~10x 2023E sales. Targeted companies such as Disney and Salesforce are learning how to grab the momentum back from activists, and communicate more effectively. The EV just looks nice. We want to hear from you. However, it was what he said Polestar is and isnt that caught my attention. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. The five-year agreement gives renters an alternative to Tesla (TSLA), which announced a relationship with Hertz in November 2021. A key advantage we have highlighted repeatedly is Polestars existing partnerships / manufacturing relationships. It is free and there is no cost or obligation to you. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way. Defends Financial Benefits of IAA Deal. He particularly enjoys creating model portfolios that stand the test of time. That is, when EV companies, in the process of ramping up production, can get their facilities firing on all cylinders. Korn Ferrys Head of Board Effectiveness Anthony Goodman talks board evaluations, universal proxies, and more with David Drapkin. Prior to merger deal announcements, SPAC stocks tend to stay close to $10 a share. 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. Bruce Ogilvie and Jeff Walker discuss Alliance Entertainment going public via Adara Acquisition Corp. (ADRA). The fact that the company is moving close to 30,000 units this. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. Right now investors are paying. 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. Ive learned in recent years that businesses operating in the middle have less chance of success. Again, such middling performance could carry on, before and after the deal closing. company, and Gores Guggenheim, Inc. ("Gores Guggenheim") (Nasdaq: GGPI, GGPIW and GGPIU), a special purpose acquisition company ("SPAC") formed by affiliates of The Gores Group and Guggenheim Capital, LLC, announced today that they have entered into a definitive business combination agreement (the "Business Combination Agreement"). GGPI Stock Price - Gores Guggenheim, Inc. is a blank check company. "We will build in America for Americans," says Thomas Ingenlath, Polestar CEO. On the date of publication, neither LouisNavellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. It was established to help Volvo win the Swedish Touring Car Championship. The Polestar deal will be supported. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). This particular EV play is appealing for two reasons. For aggressive, long-term investors who seek exposure to electric vehicles and dont already own GGPI stock, it is an excellent name to buy. The volatility amongst EV manufacturers has been significant in the second half of 2021. You might even get a better price in the process., Around the same time as my article, fellow, Chris Tyler argued that technical analysis of the stock suggested the beginning of December. Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, founded by Alec Gores, and by an affiliate of Guggenheim Capital, LLC. All quotes are in local exchange time. BA sits down with Aria Glasgow, Head of ESG Advisory at Aon, to discuss the intersection ESG and Human Capital and the risk for corporates. Im a big believer in Alec Gores, the chairman behind this SPAC. Many EV enthusiasts see its focus on performance vehicles as a differentiator. Decembers SPAC market review takes a look by the numbers of the months SPAC activity and how the market currently stands going into 2023. Attorney Advertising. The decision is yours to make. Heres why you should consider them. Changing market conditions (namely, rising interest rates) have put pressure on their valuations. Real-time alerts, yields, red flags, filings, investors, and much more. To the extent anyof the information contained herein may bedeemed to be investment advice, such information is impersonal and nottailored to the investment needs of any specific person. The company raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo's U.S. plant in South Carolina from next year. Sign up for free newsletters and get more CNBC delivered to your inbox. On the date of publication, Will Ashworth. That said, I suppose you could also argue that GGPI will move significantly higher once its trading under its new symbol, PSNY. Cuando utilizas nuestros sitios y aplicaciones, usamos. He lives in Halifax, Nova Scotia. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. GGPI shares starting to regain momentum ahead of merger vote. Polestar itself is a joint venture between, However, because Geely owns 78.4% of Volvo Cars stock not to mention nearly 97% of its voting power Polestar will ultimately be controlled by the Chinese car company and billionaire Li Shufu, the worlds, Additionally, a possible third alternative here is to buy the. Okapis Bruce Goldfarb joins the podcast to discuss the new Universal Proxy Rules and what it means for investors and board members. As background, Polestar is jointly owned by Volvo and its parent company Chinese OEM Geely (GELYY). All Rights Reserved. The Company completed the Public Offering on March 25, 2021 (the "IPO Closing Date"). Polestar intends to list on the Nasdaq in a proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in June 2022. Critics of the practice include Warren Buffett. The Polestar deal will be supported by cash proceeds of around $800 million from Gores Guggenheim, assuming no share redemptions by public stockholders of the blank-check firm. Copy and paste multiple symbols separated by spaces. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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. 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. . And Im not the only one. files S-4 for merger with Blade Therapeutics (BBTX). Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds . It was established to help Volvo win the Swedish Touring Car Championship. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. At least 73 SPACs that had planned to go public this year have since been canceled due to deteriorating market conditions. I recommend taking an in-depth look at this company, its lineup of mass affluent and luxury EVs, and its game plan to take on Tesla (NASDAQ:TSLA), Lucid (NASDAQ:LCID), and the incumbent automakers looking to grab a piece of the electric vehicle market. Thats especially the case with GGPI stock. 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. After many months of wait, the tie-up between Gores Guggenheim and Polestar is nearing completion. Objective, data-driven assessments for every public company director and officer. Under the terms of the agreement, GGPI shareholders will retain less than 6% ownership of the combined company. Supply chain headwinds, which have resulted in EV makers walking back revenue and delivery targets, have played a role as well. . In 2015, Volvo acquired Polestars high-performance business. Joanna has been analyzing and investing in emerging technologies for over two decades, having led the Technology, Media, and Telecom research at several global investment banks, including Mizuho Securities and Canaccord Genuity. Assuming it hits its growth targets, delivering a six-figure amount of vehicles annually, and generating tens of billions in annual sales, within three years. However, of the two, GELYY stock volumes are a little higher. In addition to the Geely relationship, Polestar has access to Volvos manufacturing infrastructure. The higher the price point, the easier it is to pull off. 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. 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