Polestar stock is currently unavailable to buy on any exchange. However, it is anticipated to be made public shortly. Here's everything we know so far - and how to get in on the ground floor when it opens.
What Exactly Does Polestar Accomplish, And With Whom Is It Merging?
Polestar is a Gothenburg-based electric vehicle (EV) company. It was founded in 1996 by a Volvo Cars partner and was bought in 2015 by Volvo and Geely, the joint parent companies. Polestar specializes in high-performance electric vehicles, emphasizing design, cutting-edge technology, performance hardware upgrades, and engine software optimizations. It produces both hybrid and all-electric cars.
Polestar is merging with Gores Guggenheim, a particular purpose acquisition company (SPAC) part of The Gores Group, a private equity group that has invested more than $4 billion in equity capital. It began operations in 1987 and has since executed more than 120 deals throughout the globe.
After the Hertz Transaction, Is Polestar Stock GGPI a Buy?
Polestar stock is gaining popularity as investors wait for Gores Guggenheim Inc (NASDAQ: GGPI) to become PSNY.
Gores Guggenheim Inc (NASDAQ: GGPI) had its stock rise 11.87 percent yesterday, extending its upward trend that has seen the stock rise 16.12 percent in the last year.
The SPAC vehicle planned to take Volvo's Polestar public is GGPI stock. The deal is generating a lot of buzzes, and investors are becoming antsy to get their hands on Polestar stock.
Why Is the GGPI stock Price Rising?
The stock of GGPI jumped yesterday when it was announced that Hertz (NASDAQ: HTZ) had placed an order for Polestar vehicles.
As part of the arrangement, Hertz will purchase up to 65,000 electric cars (EVs) during the following five years. The availability in Europe is expected to begin in Spring 2022, with North America and Australia following in late 2022.
What Is the Polestar 2 All About?
The Polestar 2 is a multi-award-winning electric vehicle, and Polestar's second design is also its first to provide variants. The Polestar 2 was essential in establishing the firm as a premium EV manufacturer.
Polestar 2 is a sleek electric vehicle that features Volvo's avant-garde Scandinavian style and cutting-edge in-car technology.
It incorporates the world's first Android Automotive operating system-based infotainment system. This premium edition includes Google in a driver-oriented, dynamic driving bundle.
Hertz's Electrification Journey Continues
The Hertz, Dollar, and Thrifty rental vehicle brands are all owned by Hertz Global Holdings. These are found in North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand worldwide.
Hertz also runs the Firefly vehicle rental brand and the Hertz 24/7 car-sharing company in overseas regions. It also sells vehicles via Hertz Car Sales.
The firm is dedicated to making the switch to electric vehicles. It aspires to be a market leader, concentrating on shared mobility through electric cars while ensuring clients benefit from a digital-first experience.
Polestar is the newest addition to the company's EV rental fleet. Late last year, Hertz was the subject of a media frenzy as word circulated of a 100,000 Tesla (NASDAQ: TSLA) order to the rental firm. Tesla CEO Elon Musk, on the other hand, stated that no deal had been signed.
Hertz intends to offer its corporate and leisure clients and rideshare drivers a variety of electric vehicles.
We are delighted to work with Polestar and look forward to integrating their premium EV models into our retail and ridesharing fleets, said Stephen Scherr, CEO of Hertz. We can assist speed the adoption of electrification by partnering with EV industry leaders like Polestar to provide premium EV products, an outstanding experience, and a smaller carbon footprint to renters, corporate clients, and ridesharing partners.
Is Polestar a Reputable Business?
Polestar, founded in 2017 by Volvo Cars and Geely Holding, is quickly becoming a popular electric car option. Polestar vehicles are becoming increasingly common on the roads of Europe, North America, China, and the Asia-Pacific region.
Being a Volvo subsidiary enhances its reputation and gives it a substantial advantage over several competitors in the industry.
Polestar and Volvo Cars have several specialized technologies and engineering cooperation. Meanwhile, its partnership with Geely in China offers it excellent prospects for rapid growth.
Polestar automobiles are now produced in two locations in China, with more production in the United States planned for the future.
Polestar's manufacturing volumes almost quadrupled in 2021, and the company expects them to more than double again this year. By 2025, the firm intends to sell 290,000 vehicles each year.
Polestar hopes to have its vehicles accessible in 30 countries by 2023.
Polestar CEO Thomas Ingenlath said, "Polestar is dedicated to accelerating the transition to electric transportation by offering an interesting and creative product range." Polestar is honored that Hertz has selected us as a strategic partner on their electrification journey. The collaboration with Hertz, a worldwide pioneer, will provide the fantastic experience of driving an electric vehicle to a larger audience, meeting a wide range of our shared customers' short- and long-term mobility needs. Many of them may be driving an EV for the first time, and it will be a Polestar.
When Does Polestar Plan To Go Public?
Polestar's initial public offering (IPO) has yet to be finalized. However, it is likely to occur in Q2 of 2022.
After combining with GGPI stock, it will debut on the NASDAQ stock market.
Is GGPI Stock a Good Investment?
Gores Guggenheim Inc (GGPI) has fluctuated between $9.61 and $16.41 over the last year. It is now trading at $12.51 in early market trade, indicating that it still has a 31 percent climb to its former high.
Investing in SPAC mergers carries an added risk. The majority of firms that have gone public through SPAC in the last several years have seen their share prices plummet following the merger. This is something to think about.
Because a SPAC investment offers a profitable opportunity for early private investors, they often want to benefit as soon as the new firm becomes public.
Polestar is a well-known corporation with solid backing from Volvo and prominent collaborations such as Hertz. The firm has also generated revenues, putting it ahead of many publicly traded EV competitors.
Despite this, the GGPI (soon-to-be PSNY) stock is likely to remain volatile before and after the merger owing to the nature of SPACs and the more significant economic situation.
PSNY Stock: What Investors Should Know
Polestar is a Swedish producer of electric vehicles (EVs). For its cutting-edge electric performance automobiles, the firm has won several awards. Polestar is the electric performance brand of Volvo Car Group. Polestar and Volvo, on the other hand, are both owned by the Chinese automaker Zhejiang Geely Holding Group.
Polestar, founded in 2017, is known for producing high-quality, innovative automobiles with an emphasis on sustainability. The business has made two award-winning electric vehicles.
The Polestar 1 is a limited-edition electric hybrid vehicle. The car has a range of 60 miles in pure electric mode. The Polestar 1 is the world's longest-range gas-electric hybrid vehicle. The automobile is worth more than $150,000.
The Polestar 2 is a high-performance electric luxury automobile, and it's the company's first mass-market entirely electric vehicle. The car has a 260-mile range, and it has a starting price of $59,900.
Both variants are available in 14 countries in Europe, North America, and Asia. According to a Reuters article, Polestar will produce 10,000 vehicles in 2020, and by 2025, it intends to sell about 290,000 cars per year. In addition, by 2024, the business plans to release three additional models.
Polestar Plans To Release Three New Models By 2024
In June, the company revealed its ambitions to build its first SUV, the Polestar 3.On the other hand, an American manufacturing plant and high-quality components are not cheap. If the claims are genuine, Polestar may be able to get the capital it needs by going public.
Polestar's SPAC IPO will also help the firm market quicker in the United States, allowing it to compete with Tesla. Polestar says that their vehicle is superior to Teslas. However, the firm lacks the financial resources to become a household brand in the EV market.
Polestar must be a dependable and trusted brand to compete with industry leaders. This was particularly critical when Polestar recalled all of its worldwide vehicles due to defective components.
Polestar will develop a climate-neutral vehicle as part of the Polestar 0 project.
Polestar declared in April 2021 that its Polestar 0 project will deliver a climate-neutral automobile by 2030. The corporation wants to do more than produce harmful gases, and it strives to eradicate all emissions from its supply chain and manufacturing process.
Polestar's Head of Sustainability stated, "We don't have to worry about combustion engines emitting hazardous pollutants as an electric vehicle manufacturer, but that doesn't mean our work is done." Now is the time to concentrate all of our efforts on reducing emissions in the supply chain and the manufacturing of our automobiles. For automakers, this is a once-in-a-lifetime opportunity to seize the moment and improve performance. For the first time, we can imagine a future with climate-neutral, circular, but still attractive automobiles and the human right to better air.
Polestar's devotion to environmentally friendly measures might result in the world's first carbon-neutral vehicle. Polestar CEO Thomas Ingenlath said in a report...
Offsetting is a lame excuse. We are obliged to go beyond what is now achievable by pushing ourselves to produce a genuinely climate-neutral automobile. As we design towards zero, we will have to rethink everything, innovate, and turn to exponential technologies.
The company's breakthrough innovations under development might profoundly transform how we live. As a result, investors are keen to cash in on the impending EV revolution.
Polestar Has Yet To Make A Profit. Since The Beginning
Polestar has received $550 million in total across two fundraising rounds. Despite its expansion, the business has failed to turn a profit. Polestar reported an annual deficit of MSEK 3.56 billion ($415.43 million) in the Volvo Cars Annual Report 2020. Despite this, Polestar had a profit of MSEK 5.54 billion ($645 million) over the same period.
Because Polestar has yet to make a profit, investors are unlikely to lose interest. According to rumors, the Polestar SPAC IPO will have a post-valuation of $25 billion. The amount represented 38 times the company's sales in 2020, and Tesla is now trading at 19.96 times its 2020 revenue.
What Are The Specifics of The Polestar IPO?
Polestar SPAC IPO through Gores Guggenheim Merger
According to the business, Polestar is planning an IPO via a SPAC arrangement with Gores Guggenheim. According to Bloomberg, the transaction may put the company's worth at over $25 billion.
The amalgamated company will be listed on the stock market as Polestar Automotive Holding UK Limited when the purchase is finalized.PSNY will be the ticker symbol for the Nasdaq stock.
Polestar's initial public offering is scheduled for the first half of 2022. The acquisition will complete once Gores Guggenheim investors approve it. SPAC transactions are often completed significantly quicker than conventional IPOs, with less notice to investors. Here's what a SPAC transaction is and how it differs from an IPO if you want to learn more.
Gores Guggenheim is expected to gain $800 million in revenues from the SPAC purchase. Institutional investors would invest $250 million in PIPE, or private investment in public equity, as part of the agreement.
Like other EV firms, Polestar SPAC is betting on a booming industry that shows no indications of slowing down this year. Following Lucid Motors' successful IPO, EV-related firms like Amazon-backed Rivian are going public.
Before you invest, be sure you've done your homework. Initial public offerings (IPOs) may be quite turbulent in the first several months. If you're interested in investing in initial public offerings, look at our list of the most recent IPOs and our IPO calendar. We update the calendar daily to keep you up to speed on future and recently filed IPOs.
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Guggenheim Stock News by Gores Guggenheim
Hertz (HTZ) sparked a Tesla stock frenzy last year when it said it would acquire 100,000 Teslas. The announcement of the Hertz (HTZ) purchase boosted Tesla's stock price by 13%, adding approximately $70 billion to the company's capitalization. Hertz has announced that it will buy 65,000 Polestar vehicles over the next five years worldwide. Then 65 percent of the gain implies a $40 billion increase in GGPI's market capitalization today? Isn't it simple?
I'm hoping for the best since I'm long the stock, but the order is vital and reinforces the Polestar idea. Volvo and Geely have supported Polestar. It will rely on Volvo's production sites in the United States and maybe elsewhere, and Polestar will also use Volvo's servicing network. As a result, there is no need for a large upfront investment, and production may be ramped up quickly.
Gores Guggenheim Stock Forecast
At $12 and $12.36, GGPI has broken through resistance, and these levels are now critical support if the upward trend is to continue. In the premarket, we can see that GGPI has already risen to $14. This is significant resistance, and it is the circled region from last year's rise in November/December. Because volume is more significant and a consolidation region, GGPI will now deem it a resistance level.
When Polestar goes public, here's how to get a piece of the action.
What We Know So Far Regarding Polestar's First Public Offering
The stock of Gores Guggenheim is now traded on the Nasdaq under the symbol "GGPI." After the merger, Polestar will begin selling equities on the Nasdaq under the ticker code "PSNY." According to reports, the agreement is expected to close in the first half of 2022.
Polestar expects to profit $800 million from the transaction, plus $250 million in PIPE investments.Its market capitalization is estimated to be $25 billion. Other specifics, such as the transaction's actual date and the quantity of the offering, have yet to be revealed.
SPACs, or "blank check" corporations, exist only on paper to go public, raise cash, or merge with another firm. A merger with a SPAC is a faster and simpler way to go public than a typical IPO.
When Polestar Becomes Public, How Can You Acquire Shares?
To invest in Polestar when it goes public, you'll need a brokerage account. Consider opening a brokerage account now to ensure that you are prepared when the stock goes public.
There is a comparison of stock trading platforms. Use our comparison table to choose the best platform for you.
Open a brokerage account with a company. Fill up your personal details on a form.
Make sure your payment information is correct. Make a deposit into your bank account.
Before deciding if a stock is a good investment for you, look up the company's name or ticker symbol.
Now is the time to invest, or it will be too late later. You may buy as many shares as you like with a market order, or you can use a limit order to delay your purchase until the stock reaches a certain price.
Final Thoughts
Many firms are investing in electric vehicles as they become more popular. These stocks, however, are dangerous since they may quickly lose value.
However, electric car stocks will become more prevalent and less dangerous in the future. Electric vehicle technology is fast developing, and it will be utilized in more areas in the future. With this kind of momentum, the value of these companies is anticipated to skyrocket shortly.
As a result, you must invest in a firm that successfully implements its plan. Polestar has big aspirations for the future and is quickly expanding. Joyous news, such as shareholder approvals, might boost GGPI stock as the merger approaches. However, once Polestar begins trading, it will be a fantastic investment.
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