Folks who’ve invested in Colorado-based Gores Guggenheim (NASDAQ:GGPI), the shell company bringing Swedish electric vehicle (EV) maker Polestar to Wall Street, are buzzing about a major purchase order. Apparently, Polestar is set to deliver a whole lot of vehicles to a well-known car rental firm and GGPI stock is getting a subsequent boost.
Polestar isn’t a household name quite yet. You may have heard of the company, though, since it aired a commercial during the Super Bowl not long ago. The ad featured a model of the high-performance Polestar 2 EV.
With a still-fresh development, however, Polestar could garner even more brand-name recognition. According to The Wall Street Journal, Hertz (NASDAQ:HTZ) has agreed to purchase as many as 65,000 EVs over five years from Polestar.
As InvestorPlace contributor William White pointed out, Hertz is first purchasing the Polestar 2. It is reportedly anticipating the vehicles will be available in Europe starting this spring. Then, they should be available in North America and Australia later this year.
Why would Hertz make such a sizable order of Polestar’s EVs? Its Chief Executive Stephen Scherr reportedly observed that higher gasoline prices are pushing some rental customers into electric models.
Are Hertz’s customers worried about the battery range of EVs, though? Apparently not. “We’ve not experienced any elevated level of anxiety on the part of the customer,” Scherr assured.
Truly, this should be a win-win for all parties involved in this transaction. For one thing, the deal with Polestar can help Hertz meet the demand for rentable EVs.
Second, Polestar wins because Hertz’s customers can get accustomed to driving its cars. Then, perhaps they’ll consider buying a Polestar 2 when they’re ready to join the EV revolution.
The ultimate beneficiary, however, could be Gores Guggenheim’s shareholders. $10 was a battle zone for GGPI stock for quite a while. After the Hertz deal, though, $10 might permanently be in the rearview mirror.
On the date of publication, David Moadel 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.