As background, Polestar is jointly owned by Volvo and its parent company Chinese OEM Geely (GELYY). He particularly enjoys creating model portfolios that stand the test of time. GGPI Stock News. In other words, hes saying if you buy a Polestar, youll be getting something unique and special. [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. 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. Ingenlath wants customers that will be loyal to the Polestar brand. 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. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. "We don't need the capital to build the factory. If you own the shares of the EV maker already, dont worry about its poor performance recently, I wrote in January. At least, based on its success so far, and on future projections. The opinions expressed in this article are those of the writer, subject to the, 5 Hypergrowth Stocks With 10X Potential in 2023, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. Currently, this stock earns a B rating in my Portfolio Grader. Enthusiasm about the deal, which was announced last fall, has seen a big drop in recent months. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. This browser is no longer supported at MarketWatch. Press question mark to learn the rest of the keyboard shortcuts. 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. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. The combination of Gores Guggenheim and Polestar is one of the biggest SPAC deals of the year. Electric-car maker Polestar strikes $20-billion deal with Gores - CNBC The deal relates primarily to the EV makers Model 3. On May 25, the blank-check company formally announced the date on which shareholders will vote to approve the transaction (June 22). And Im not even a total car geek. 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 contrast between the stock buildup of CCIV/LCID versus GGPI/PSNY is readily apparent. Do this now. Polestar is a Swedish electric vehicle manufacturer backed by Volvo and Volvo's de facto . $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 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. 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. Approval of the SPAC deal was widely expected. 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. After a bustling 2021, the entire SPAC market has slowed markedly amid theglobal marketdownturn. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. Navigating stock market volatility since it all began in 2000. Second, it currently trades at an attractive valuation relative to its prospects. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. 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. Its opening more of them anyway. It was a slower month to kick off the year for SPACs. Omg guys I saw GGPI merger in my smartphone notifications and my heart was pounding . Broadcom continued to produce better results and forecast better near-term sales than Wall Street expects Thursday, and shares rose in extended trading. Mergers and Acquisitions news coverage - MarketWatch Got a confidential news tip? Enthusiasm about the. SPACs are publicly listed companies that are raised with the intention of merging with a private company at a later date. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, https://www.monteverdelaw.com/case/gores-guggenheim-inc, SHAREHOLDER ALERT: The M&A Class Action Firm Announces the Investigation of Adamis Pharmaceuticals Corp. - ADMP, SHAREHOLDER ALERT: The M&A Class Action Firm Announces the Investigation of Ranger Oil Corp. - ROCC. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. 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. In 2014, it mass-produced both the S60 and V60 for sale in eight markets. This is a collection of 34 auto manufacturers, including Geely at a 3.22% weighting. All rights reserved. It was established to help Volvo win the Swedish Touring Car Championship. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. The good news for GGPI stock is that relatively speaking Polestar seems far less likely than peers to be one of those companies. . PDF Polestar Signs Agreement to be Publicly Listed Through Combination with Right now investors are paying. It formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. 7 Tech Stocks Worth Snatching Up After Their Tumble. 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. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way. 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. He lives in Halifax, Nova Scotia. The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user. Check out our February podcast with CEO Thomas Ingenlath, and detailed analysis of GGPI here. 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. Historical and current end-of-day data provided by FACTSET. Owner Earnings per Share (TTM) explanation, calculation, his Ingenlaths comments in Automotive News laid out Polestars three-pronged production plan for China, South Carolina and Europe. Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. The stock did rise the day after the shareholder vote announcement, but since then, its drifting lower. Thats especially the case with GGPI stock. Stock Market | Daily Penny Alerts did not hold (either directly or indirectly) any positions in the securities mentioned in this article. American Airlines (AAL) announces its new chairman of the board as Gregory D. Smith, the former CEO of Boeing (BA). I also said that, at these prices, GGPI stock would, The critical distinction about Polestar is that its not a startup. For the best MarketWatch.com experience, please update to a modern browser. He particularly enjoys creating model portfolios that stand the test of time. 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. 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. 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. On 11/4/2021 the company announced a proposed merger with TradeStation Group, Inc, who provides award-winning trading and . Will Ashworth has written about investments full-time since 2008. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. In fact, as its already reached the billion dollar mark in terms of sales, calling it early stage may be a misnomer. Copyright Colombier was founded by Omeed Malik, founder and CEO of Farvahar Partners. Privacy Notice | 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. Thats well above where it currently trades under the $11.50 level. . . 1125 N. Charles St, Baltimore, MD 21201. 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. with the special purpose acquisition company (SPAC) on Sept. 27, GGPI stock has gained about 14% or so. 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. Additionally, a possible third alternative here is to buy the First Trust Nasdaq Global Auto Index Fund (NASDAQ:CARZ). 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. As a result, Geely owns 50.5% of Polestars equity while Volvo owns 49.5%. 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. Nordstrom says it will end its business in Canada to help shore up profit after reporting weaker-than-expected sales results and forecasts. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). For 2022 and 2023, Polestar has guided to $3.2 B and $6.7B in sales, respectively. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. It previously said it has another model in development called the Precept, which is a larger sedan. GGPI shares have been trading in a steady ~$11 range prior to days announcement (shares are up 8% intraday). 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. It may not be until the supply chain issues are resolved. But its a very different market now, amidst a more tepid outlook for growth stocks. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. In 2015, Volvo acquired Polestars high-performance business. Once the deal is completed, Polestar will trade under the ticker symbol PSNY on the Nasdaq. Nelzon Peltz and Trian dropped their proxy fight against Walt Disney Co. (DIS) following Disneys cost cutting, reorg, and board appointments. Labor representatives at a Nissan Motor Co Ltd plant in the central Mexican state of Morelos have reached an agreement with the Japanese carmaker to hike pay 9% as of April, the union said. Sign up below to get this incredible offer! 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. 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. The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. Place to discuss GGPI and Polestar. The Gravity performance luxury SUV is expected to come to market in North America in 2023. He has also been selected by Martindale-Hubbell as a 2017-2021 Top Rated Lawyer. 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. Polestar's listing plan comes as automakers shift their focus to environment-friendly vehicles, amid rising pressure from lawmakers and investors concerned about climate change. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. NEW YORK, Nov. 29, 2021 /PRNewswire/ -- Juan Monteverde, founder and managing partner of the firm Monteverde & Associates PC ("M&A Firm"), a national securities firm ratedTop 50in the 2018-2020 ISS Securities Class Action Services Report and headquartered at theEmpire State Buildingin New York City, is investigatingGores Guggenheim. Thereafter, our firm successfully preserved this victory by obtaining dismissal of a writ of certiorari as improvidently granted at the United States Supreme Court. 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 beginning next year. Intraday data delayed at least 15 minutes or per exchange requirements. However, GGPI stock drifted. Nevertheless, even as EV stock mania has waned, the EV trend isnt going away. 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. Polestar SPAC Merger Makes GGPI Stock a Hot Item - InvestorPlace Polestar Is The 9th SPAC Merger For The Gores Group: Here's How The Anticipation on GGPI/Polestar merger. Subscriber Agreement & Terms of Use | We were listed in theTop 50in the 2018-2020 ISS Securities Class Action Services Report. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). However, it was what he said Polestar is and isnt that caught my attention. Get in Now on Tiny $3 Forever Battery Stock, Early Bitcoin Millionaire Reveals His Next Big Crypto Trade On Air. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. News, Media, rumors,and general discussion topics are welcome! SPAC Merger. Since the Swedish electric vehicle (EV) manufacturer announced its merger. The SPAC merger deal was announced on Sept. 27, where GGPI SPAC agreed to merge with the Swedish private EV car maker Polestar. Because if it runs as Polestar it will do so premarket. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Again, such middling performance could carry on, before and after the deal closing. If you havent bought it, thats great news because you still have time to get in before GGPI takes off post-merger. 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. We continue to view GGPI shares as undervalued heading into the merger. Under the terms of the agreement, GGPI . However, if you own, for China, South Carolina and Europe. See here for a complete list of exchanges and delays. 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. Polestar, the Global Electric Performance Car Company, Signs Agreement SPAC Merger. Instead, get to know the company a little better. 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. The Company has selected December 31 st as its fiscal year-end. New pill cuts cholesterol, heart attacks, Seniors:Heres an easy wayto cut your risk of a heart attack or stroke by nearly 80%. Okapis Bruce Goldfarb joins the podcast to discuss the new Universal Proxy Rules and what it means for investors and board members. All quotes are in local exchange time. Gores Guggenheim believes the deal will raise about $850 million in gross proceeds. Its anyones guess when exactly EV stocks will take off again. Polestar CEO Thomas Ingenlath recently discussed the companys plans with Automotive News. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. But there is reason to believe that quality, well-run EV companies like PSNY will survive and thrive in the years ahead.