Polestar announced on April 13 that it opened a retail location in Scottsdale, Arizona, marking the first location of its kind for the electric vehicle (EV) manufacturer. In turn, this is good news for Gores Guggenheim (NASDAQ:GGPI) and GGPI stock, as the special purpose acquisition company (SPAC) backed by The Gores Group and Guggenheim Partners inches closer to their merger.
While the Swedish spinoff from Volvo Cars met its 2021 vehicle deliveries goal of 29,000, Polestar’s retail expansion should help boost its share price post-merger. Trading a little bit higher than where it was when I wrote about the EV maker in early March, I continue to believe its sportiness and performance will set it apart from other EV brands.
Ultimately, however, its sales personnel at the Scottsdale Space will play a big part in moving the vehicles out the door. According to the company, Arizona is the 11th-largest market in the U.S. for EVs; In fact, EV sales in Arizona grew 96% year-over-year (YOY) in 2021. Thus, the opportunity for Polestar in the Southwest is significant.
“Polestar Scottsdale gives the brand a great presence in the Southwest. Phoenix is a rapidly growing market, with a 99% year-over-year increase in EV registrations in 2021,” says Gregor Hembrough, Head of Polestar North America.
But the company isn’t stopping at Phoenix. It plans to have 35 locations in the U.S. and Canada by the end of 2022. And that’s to go along with 115 internationally.
Overall, Polestar has been a standalone premium EV manufacturer since 2017. Soon it will be an independent public company trading under the ticker symbol “PSNY.” In turn, those who bought GGPI stock in its March 2021 IPO should be rewarded in the years ahead as the company meets and exceeds investor expectations.
While you can order a Polestar online, I don’t think the North American buyer is ready to give up on purchasing vehicles at the dealership. That said, Polestar will give its buyers, whether online or in-store, a premium service.
The latest news from Polestar is a part of its journey. So, buckle up for the ride.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.