Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ:GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. 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. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Intraday data delayed at least 15 minutes or per exchange requirements. 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. Defends Financial Benefits of IAA Deal. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds . On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. You might even get a better price in the process.. It predicts it will rake in $1.6 billion in revenue this year and double that number next year. However, I also said that investors need not rush to buy the SPAC before the merger happens. However, it was what he said Polestar is and, The aim of the Polestar range is to be sportier and to have a stronger focus on the driver. On the date of publication, Will Ashworth. Amidst production hiccups at rivals, Polestar is delivering. [I]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. $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 Navigating stock market volatility since it all began in 2000. It formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. Visit a quote page and your recently viewed tickers will be displayed here. As you might be aware, post-merger, Polestars existing shareholders will own, . Our 3 Top Picks. It may not be until the supply chain issues are resolved. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. Create an account to follow your favorite communities and start taking part in conversations. Source: Jeppe Gustafsson / Shutterstock.com. Its opening more of them anyway. The volatility amongst EV manufacturers has been significant in the second half of 2021. SPAC Merger. Rubicon Technologies (RBT) CEO Jevan Anderson resigned, Marblegate is merging with itself, and the rest of the days digest. 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. 2023 InvestorPlace Media, LLC. Anywhere in between makes it harder to gain customer loyalty. Illusion versus reality. The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. The merger between Polestar and Gores Guggenheim (NASDAQ:GGPI) is expected to happen in the first half of 2022. At writing, its at $9.97 per share, just a penny above its debut price. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. As you might be aware, post-merger, Polestars existing shareholders will own 94% of the company. 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. 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. 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. Under the terms of the agreement, GGPI shareholders will retain less than 6% ownership of the combined company. The stock did rise the day after the shareholder vote announcement, but since then, its drifting lower. This report contains opinions and is provided for informationalpurposes only it does not constitute investment, legal or tax advice. Todays announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. However, thats an entirely different subject than whether you should buy GGPI at todays prices. That company provides digital twins of properties. 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. For the best MarketWatch.com experience, please update to a modern browser. 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. The SPAC merger deal was announced on Sept. 27, where GGPI SPAC agreed to merge with the Swedish private EV car maker Polestar. Presumably, the deal, which will result in the company taking on the Polestar name, and GGPI stock becoming PSNY stock, will close not too long after that. We earn $400,000 and spend beyond our means. . 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. SPAC Merger. Get this delivered to your inbox, and more info about our products and services. With that in mind, I continue to believe in Alec Gores real-world record of success with SPACs. All told, expectations are high for PSNY stock once it begins trading. Both stocks are thinly traded over the counter. Although its unclear whether it zooms or sits idle in the near-term, over a longer timeframe it could really take off. Prior results do not guarantee a similar outcome with respect to any future matter. EV maker Polestar going public via a SPAC with Gores Guggenheim. Nosotros, Yahoo, somos parte de la familia de marcas de Yahoo. Sign up below to get this incredible offer! 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 good news for GGPI stock is that relatively speaking Polestar seems far less likely than peers to be one of those companies. Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. (C) 2021 Monteverde & Associates PC. It could continue to deliver similar performance in the short-term. Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Intraday Data provided by FACTSET and subject to terms of use. Since the Swedish electric vehicle (EV) manufacturer announced its merger. The Polestar deal will be supported. A buy under $10 would be an excellent entry point, in my opinion. And Im not even a total car geek. The contrast between the stock buildup of CCIV/LCID versus GGPI/PSNY is readily apparent. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. quotes delayed at least 15 minutes, all others at least 20 minutes. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Now, with volatility likely to continue into 2022, some possible alternatives exist as a short-term solution for risk-averse EV investors. February 28, 2023. Im a big believer in Alec Gores, the chairman behind this SPAC. Salesforce Inc. (CRM) surges after hours following earnings amidst potential activist activity and todays SPAC, IPO, and Exec News. The company is an established EV maker outside the U.S. but not headquartered in China. 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. Join the Conversation! 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. The deal with Gores Guggenheim (GGPI.O) will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and a PIPE, or private investment in public equity, of $250 million from institutional investors. Its a New Era for Tech Stocks. Sam Zaid, CEO of Getaround, joins David Drapkin on the podcast to discus what makes carsharing company Getaround so special and their journey to go public. Will Ashworth has written about investments full-time since 2008. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). If you havent bought it, thats great news because you still have time to get in before GGPI takes off post-merger. GGPI shares have been trading in a steady ~$11 range prior to days announcement (shares are up 8% intraday). The Gores Group led by chairman Alec Gores and CEO Mark Stone announced the deal between Gores Guggenheim Inc (NASDAQ: GGPI) and electric vehicle company Polestar. Shares of the blank-check firm pared earlier gains and were up around 3% before the bell. The transaction is expected to close in the first half of the year. Post merger, the combined company will be named Polestar Automotive Holding UK Ltd. and will trade under the symbol "PSNY" on the Nasdaq. I also said that, at these prices, GGPI stock would seem like a steal in a few years. Korn Ferrys Head of Board Effectiveness Anthony Goodman talks board evaluations, universal proxies, and more with David Drapkin. Owner Earnings per Share (TTM) explanation, calculation, his 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. Shares of GGPI are down a little over 2% as of this writing. Therefore, it might make sense to buy now before the merger, rather than afterwards. 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. It doesnt matter if you have $500 in savings or $5 million. Don't take it as financial . A recovery may not happen until the market has absorbed the changes in economic and market conditions. Real-time alerts, yields, red flags, filings, investors, and much more. 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. 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. From the day the Polestar 1 was launched, I have been a fan of the brands designs. 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. 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. However, if you own, for China, South Carolina and Europe. Silicon Valley Confronts the End of Growth. Enthusiasm about the. Polestar is unique in that while its not the flashiest vehicle, the companys main selling proposition is to make reliable cars without gimmicks. Colombier was founded by Omeed Malik, founder and CEO of Farvahar Partners. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. We can put the money raised into developing the technology and the market," Thomas Ingenlath, Polestar's chief executive, said in an interview. Featured. These symbols will be available throughout the site during your session. Aug. 17 2021, Published 3:11 p.m. Type a symbol or company name. Banjo player, artist, and frittata-maker. 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. He lives in Halifax, Nova Scotia. Most important, the company is well underway with production and revenue generation ($1.6B in 2021 sales). New pill cuts cholesterol, heart attacks, Seniors:Heres an easy wayto cut your risk of a heart attack or stroke by nearly 80%. Type a symbol or company name. In what stands to be a pivotal year for the future of the market, we recap January. mostrar anuncios y contenido personalizados basados en perfiles de inters; medir la efectividad de los anuncios y el contenido personalizados, y. desarrollar y mejorar nuestros productos y servicios. Gores has done as good a job as anyone demonstrating that blank-check companies can deliver the goods. Its safe to say this isnt the best market for an EV company to debut. Amidst a proxy fight with Trian, Walt Disney Co. (DIS) announced that it will cut ~7k jobs as part of a $5.5B cost savings plan. Initial orders are for the Polestar 2 sedan. The deal announcement stated it would close before June 30, 2022. Heres why you should consider them. 2023 CNBC LLC. 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. Polestar delivered about 10,000 vehicles globally last year and expects to sell about 290,000 vehicles per year by 2025. "We don't need the capital to build the factory. 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 enterprise hardware company saw surprising strength in the January quarter in computing and networking hardware. The post Keep an Eye on Gores Guggenheim Stock, as it Gears Up for its EV Merger appeared first on InvestorPlace. Im a big believer in Alec Gores, the chairman behind this SPAC. Inc. ("GGPI" or the "Company") (GGPI)a special purpose acquisition company, relating to the proposed merger with Polestar Automotive Holding Limited. However, according to Volvo, only 100 were made in the initial year. Nelzon Peltz and Trian dropped their proxy fight against Walt Disney Co. (DIS) following Disneys cost cutting, reorg, and board appointments. And Im not the only one. Ultimately, Tyler felt that waiting could get you a better entry point. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. So far this year, there have only been 11 SPAC listings valued at $25 million or more. Two years later, it made a move to electric-powered performance vehicles. That is, when EV companies, in the process of ramping up production, can get their facilities firing on all cylinders. SPACs are publicly listed companies that are raised with the intention of merging with a private company at a later date. 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 Company completed the Public Offering on March 25, 2021 (the "IPO Closing Date"). The technical storage or access that is used exclusively for statistical purposes. But there is reason to believe that quality, well-run EV companies like PSNY will survive and thrive in the years ahead. Right now investors are paying. 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. Nordstroms off-price Rack stores are struggling. Deal Announcement for ISAA /HYPEBEAST . This browser is no longer supported at MarketWatch. Thats well above where it currently trades under the $11.50 level. All rights reserved. Again, such middling performance could carry on, before and after the deal closing. Ingenlaths comments in Automotive News laid out Polestars three-pronged production plan for China, South Carolina and Europe. 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. Polestar itself is a joint venture between Volvo (OTCMKTS:VLVLY) and Geely (OTCMKTS:GELYY). Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. After a bustling 2021, the entire SPAC market has slowed markedly amid the global market. Subscriber Agreement & Terms of Use | Hertz pushing to be the largest EV rental fleet, adding zero emission models. I share my. InvestorPlace->, InvestorPlace - Stock Market News, Stock Advice & Trading Tips. An alternative to Tesla. Attorney Advertising. The critical distinction about Polestar is that its not a startup. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The factors still affecting EV stock performance could carry on in the months ahead. Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia. Because if it runs as Polestar it will do so premarket. 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. Shares of Gores Guggenheim pared some earlier gains and were up over 4% in morning trading. Excluding employee stock compensation from one measure of earnings make them look more favorable. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Cookie Notice (). All quotes delayed a minimum of 15 minutes. GGPI shares starting to regain momentum ahead of merger vote. All quotes are in local exchange time. 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. 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. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. Nordstrom says it will end its business in Canada to help shore up profit after reporting weaker-than-expected sales results and forecasts. It was established to help Volvo win the Swedish Touring Car Championship. The higher the price point, the easier it is to pull off. Consumers looking for more ways to save money helped Kroger beat profit expectations and provide an upbeat outlook. After many months of wait, the tie-up between Gores Guggenheim and Polestar is nearing completion. in July and Gores brought $310 million in cash to the deal after redemptions. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way. The technology is used widely in the. In 2014, it mass-produced both the S60 and V60 for sale in eight markets. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. Will Be Even Bigger Than Your Wildest Expectation, 7 Over-$100 Stocks That Are Worth Every Penny, Louis Navellier and the InvestorPlace Research Staff. For Hertz, the partnership builds on the companys ongoing commitment to lead in electrification and shared mobility. However, at one point in mid-November, GGPI stock was trading as high as $16.41. On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Even as the Polestar deal, which shareholders will vote to approve later this month, is on the verge of closing. News, Media, rumors,and general discussion topics are welcome! Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Yet if youve done your research, and are bullish on the future prospects of this promising EV play, consider GGPI stock a buy. Gores Guggenheim went public with its initial public offering (IPO) in March. 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. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Strong underwriting, an Asia expansion, and a history of consistent dividend raises make the shares attractive. The EV just looks nice. Mergers and Acquisitions Lightspeed Commerce Oper Chief Brandon Nussey Steps Down Shopping at Kroger can be up to four times cheaper than eating out, CEO says ACI 0.00% Broadcom stock moves. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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We live in purgatory: My wife has a multimillion-dollar trust fund, but my mother-in-law controls it. Written by Once the deal is completed, Polestar will trade under the ticker symbol PSNY on the Nasdaq. Currently, this stock earns a B rating in my Portfolio Grader. At least 73 SPACs that had planned to go public this year have since been canceled due to deteriorating market conditions. Accumulated other comprehensive incom In addition to the Geely relationship, Polestar has access to Volvos manufacturing infrastructure. The Polestar deal will be supported by cash proceeds of around $800 million from Gores Guggenheim Inc, assuming no share redemptions by public stockholders of the blank-check firm. Valuation remains discounted, in our view, at an implied market cap of $26.1 billion ($12.40 and 2.125B shares outstanding), which implies 3.9x 2023E sales. 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. He has also been selected by Martindale-Hubbell as a 2017-2021 Top Rated Lawyer. Inc. ("GGPI" or the "Company") (GGPI) a special purpose acquisition company, relating to the proposed merger with Polestar Automotive Holding Limited. files S-4 for merger with Blade Therapeutics (BBTX). "We will build in America for Americans," says Thomas Ingenlath, Polestar CEO. Last year, a record 613 SPAC listings occurred on U.S. exchanges, raising a total of $145 billion. 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. So, this all gives you two alternatives to GGPI stock: either Volvo or Geely. Bruce Ogilvie and Jeff Walker discuss Alliance Entertainment going public via Adara Acquisition Corp. (ADRA). Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Will Ashworth has written about investments full-time since 2008. A Polestar will be more progressive and avant-garde; therefore, it will not be loved by everybody, but it will address its fans, Ingenlath stated. 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. either via e-mail at [emailprotected] or by telephone at (212) 971-1341. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising.

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