Polestar seems bound for electric vehicle glory after a new report revealed its latest car has more range than a Tesla (NASDAQ:TSLA) Model Y. Investors likely know that the Swedish automaker is prepping to come public through Gores Guggenheim (NASDAQ:GGPI). As a result, GGPI stock jumped 2.4% on the news.
So what do you need to know about the Tesla-beating range that has investors talking?
The Polestar 2 crossover vehicle is rated for 270 miles per charge, more than the comparable Model Y’s 244 miles. Attributed to a bigger battery and less power use, the news should encourage many EV hopefuls.
The Polestar 2 does have one less motor than the Model Y, which largely explains its comparably meek horsepower. However, a two-motor Polestar 2 would also barely earn a win over Tesla Model Y, with an estimated 250 miles per charge.
Why Does It Matter for GGPI Stock?
This latest development injects yet another player in the quickly growing EV race. With Tesla owning more than 60% of the U.S. EV market share, Polestar offers a more economical alternative. The Polestar 2 starts at $45,900 compared to the $58,990 Model Y.
Gregor Hembrough, head of Polestar in North America, announced the revamped range in a news release today.
“We are pleased to announce the longest range of any Polestar yet. Alongside continual range improvements, we continue to offer new conveniences for our customers free of charge via [over the air] software downloads.”
Polestar is currently a private company, with immediate plans to come public via special purpose acquisition company Gores Guggenheim. Eying the first half of 2022 for its debut under PSNY stock, GGPI can be considered a reflection of Polestar’s future. In other words, GGPI’s jump today can be defined as a boost for Polestar itself.
SPAC mergers and EV companies continue gaining traction after a season full of headline-grabbing mergers. Lucid Motor’s (NASDAQ:LCID) fruitful merger in the summer has seemingly inspired a wave of EV companies eying the relatively quick and easy entrance into the stock market.
Stay tuned to see if Polestar will be the next EV star.
On the date of publication, Shrey Dua 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.