Is Gores Guggenheim A Buy Ahead Of Its Merger With Polestar?

Summary

• GGPI shareholders will be voting on its proposed merger with Swedish EV maker Polestar on Wednesday, June 22.
• Upon approval of the transaction, Polestar could be making its debut on Nasdaq under the ticker "PSNY" as soon as later this week.
• The stock is currently trading at its implied transaction enterprise value with no post-close premium in sight, a rare occurrence compared to blockbuster EV IPOs observed in the past two years.
• GGPI remains attractive at current levels, considering Polestar's growth prospects buoyed by key near-term catalysts that include the launch of its flagship SUV later this year, and continued expansion across core EV regions later this year.

Robert Way/iStock Editorial via Getty Images

Editor's Note: This article was amended on 06/27/2022 to reflect clarified pro forma cash information.

The Gores Guggenheim (GGPI) stock, alongside its SPAC and electric vehicle ("EV") peers, have been victim to the ongoing market turmoil this

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GGPI, LCID, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.