Colorado-headquartered Gores Guggenheim (NASDAQ:GGPI) is the shell company bringing Swedish electric vehicle (EV) maker Polestar to Wall Street. Taking a small position in GGPI stock could be a winning strategy as Polestar just released positive news.
Polestar’s electric vehicles are designed to be powerful and luxurious. The company also has a strong focus on sustainability and recently introduced updates to reduce the climate impact of the Polestar 2 vehicle.
While there is certainly risk involved in investing in Gores Guggenheim and Polestar, the long-term rewards could be substantial.
What’s Happening With GGPI Stock?
GGPI stockholders have already experienced the downside risk of holding shares. After hitting a 52-week high of $16.41, the stock has retraced to $10 and change.
In order to invest in Gores Guggenheim and Polestar with confidence, it’s important to have a long-term perspective. Polestar is a small company now, but it plans to have its cars available in 30 markets by 2023.
Moreover, Polestar CEO Thomas Ingenlath is preparing stakeholders for bigger and better things, including the rollout of an SUV. “We believe our future growth will be further accelerated by our entry into the lucrative SUV market later this year with the world premiere in October of the long-awaited Polestar 3 electric performance SUV,” Ingenlath explained.
A Revised Forecast Isn’t All Bad News
So, here’s a good news, bad news situation. The good news is that, during the first four months of 2022, Polestar’s vehicle sales more than doubled to roughly 13,600. This suggests that Polestar is driving in the fast lane.
The bad news is a reminder to keep our expectations in check. Due to “prolonged government COVID-19 lockdowns in China during the first half of 2022,” Polestar reduced its 2022 customer vehicle delivery forecast from 65,000 to around 50,000.
There’s nothing wrong with modifying expectations when it’s warranted. Fortunately, Polestar’s delivery projection is still strong despite the challenges presented by Covid-19 lockdowns in China.
Besides, Ingenlath is sticking to his guns when it comes to Polestar’s long-term objective. “Any short- to medium-term economic effects have not dented our goal of selling 290,000 cars in 2025 – 10 times more than we sold in 2021,” he assured.
Take a Small Bet on GGPI Stock
It’s generally risky to invest in EV startups. However, Polestar is unique in the EV market with its powerful, futuristic-looking cars.
In time, GGPI stock could return to its prior peak price. Even with a revised forecast, Polestar is still shooting for the stars and demonstrating growth. So, a small position in the stock could be a worthy bet on an interesting EV contender.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.