The year may be winding down, but the season of electric vehicles is still heating up. And from the looks of it, the race is only just starting. Last week, everyone was focused on newly public player Rivian (NASDAQ:RIVN), which set records in its debut. This week, we’re seeing markets prepare for another important debut as European innovator Polestar prepares to come public through a SPAC merger. Its partner Gores Guggenheim (NASDAQ:GGPI) is off to a good start this week, with GGPI stock up 16%.
What’s Happening With GGPI Stock
Today brought good news for anyone interested in the next big EV play. Polestar reported a positive update on its plans for the merger, specifically that the deal is expected to close within the first half of 2022.
After soaring more than 13% in pre-market trading, GGPI shares remain solidly positive. We’re only an hour into the trading day, but shares are not showing signs of slowing down.
GGPI stock’s morning has sent it up by nearly 38% for the past five days.
Why It Matters
As of now, it seems that all systems are go for the merger that will allow Polestar to start trading on the Nasdaq. When it does, the company’s valuation will likely be around $20 billion. Besides Rivian’s stand-out debut, many investors are also likely thinking of innovator Lucid Motors (NASDASQ:LCID). LCID stock captivated investors with its own SPAC merger, and has enjoyed a strong 2021. Shares are up more than 80% in just the last month.
Polestar, though, has drawn more comparisons to industry giant Tesla (NASDAQ:TSLA). One expert described the company’s Polestar 2 as “the closest thing on the market today to a Tesla Model 3 competitor.” While CEO Thomas Ingenlath has stated that his company does not intend to be the Tesla killer, it’s clear that the new player to the EV race could certainly challenge it. Polestar has plenty of projects in the works, including an SUV with a lidar advanced sensor system pioneered by Luminar Technologies (NASDAQ:LAZR).
InvestorPlace contributor Stavros Georgiadis recently laid out the many reasons for investors to be excited about Polestar going public. He also noted that while many other SPAC deals have brought EV producers public before any actual vehicles had been released, Polestar has two models under production.
According to the statement released today, Polestar is “ready for further growth.” More specifically, the company is looking to sell 290,000 vehicles before the end of 2025. It is also planning to enter new international markets and expand its retail presence.
What It Means
According to Georgiadis, Polestar is a rare company in the sense that it is a EV SPAC play that isn’t “all talk.” That certainly seems to be true.
There was plenty to be optimistic about this fall when the merger was first announced, and months later, there’s even more cause to watch as the closing of the deal nears. For now, GGPI should be on everyone’s radar.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.