- Gores Guggenheim stock soars after Hertz (HTZ) makes an order.
- Gores Guggenheim will take Polestar public via SPAC deal.
- GGPI stock catching interest on social media sites.
Update: The share price of Gores Guggenheim (NASDAQ: GGPI) broke out of its consolidative phase and exploded on Monday, surging to fresh four-month highs of $13.30. GGPI shares booked a whopping 11.87% gain on the day, closing the day at $12.82. The price of the Electric Vehicle (EV) maker rocketed after Polestar announced that the premium electric performance car maker has entered into a new global partnership with Hertz rental. The partnership includes purchasing up to 65,000 electric vehicles over five years. The upbeat tone on Wall Street also collaborated with the massive surge in GGPI stock price, despite mounting Russia-Ukraine tensions.
Gores Guggenheim (GGPI) is often the EV name that gets overlooked by retail traders who focus on the big daddy, Tesla (TSLA), and then look to homegrown names such as Mullen Automotive (MULN), Lucid (LCID) and Rivian (RIVN). This may be because Polestar is a sort of Scandinavian Volvo offshoot and as of yet is not that visible in the US. The company did attempt to turn this around with an eye-catching Superbowl ad that included a dig at Tesla, but so far the stock has failed to grab consistent investor or meme trader enthusiasm. Might that be about to change?
Gores Guggenheim Stock News
Hertz (HTZ) last year launched a frenzy in Tesla stock when it announced it was going to buy 100,000 Teslas. Tesla's stock price roared ahead by 13% on the news of the Hertz (HTZ) order, which added about $70 billion to the valuation. This time Hertz has announced it is prepared to order 65,000 cars from Polestar over the next five years as part of a global partnership. Then 65% of the gain means we should see the market cap of GGPI rise by $40 billion today? Easy, right?
Wishful thinking on my part as I am long the stock, but the order is certainly noteworthy and underlined the Polestar concept. Polestar is backed by Volvo and Geely. It will piggyback on Volvo's manufacturing plants using its US plant and potentially others globally. Polestar will also piggyback on Volvo's service network. This removes costly investment and means production should be quickly scalable.
Gores Guggenheim Stock Forecast
GGPI has broken resistance at $12 and $12.36. These levels are now key support if the move is to be sustained. We can see already that GGPI has reached up to $14 in the premarket. This is strong resistance and is the circled area from the last spike in November/December last year. Volume is higher up there, and it is a consolidation area meaning GGPI will now find it as a resistance level.
GGPI stock chart, 20-hour
The author is long GGPI.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains confined in a multi-day-old trading range ahead of Australian CPI, Chinese PMIs
AUD/USD extends its sideways consolidative price move for the fourth straight day on Wednesday as traders prefer to wait on the sidelines ahead of the crucial data/event risks. The quarterly Australian CPI report, accompanied by the official PMI prints from China, should provide some impetus to the Aussie.
USD/JPY hangs near multi-month low ahead of BoJ, Fed policy decisions
The USD/JPY pair oscillates in a range just above a nearly three-month low touched last week as traders opt to wait for the key central bank event risks – the BoJ policy decision. The markets have been discounting a greater chance of a rate hike, which underpins the JPY and acts as a headwind for the currency pair.
Gold price bulls turn cautious ahead of the crucial FOMC policy decision
Gold price consolidates the previous day's strong move up and holds above the $2,400 mark during the Asian session on Wednesday. Traders now seem reluctant and await more cues about the Fed's policy path before committing to the next leg of a directional move. Hence, the focus remains on the outcome of a two-day FOMC meeting.
Ethereum price dynamics combined with Q2 insights suggest ETH has potential for another rally in current cycle
Ethereum is down 1.5% on Tuesday despite several market participants acknowledging its ninth anniversary. Meanwhile, Glassnode shared key ETH Q2 insights that may prove beneficial as the market takes shape in Q3.
Bank of Japan Preview: Set to hold rates, focus on quarterly forecasts and Governor Ueda’s remarks
The Bank of Japan is expected to hold interest rates and trim bond purchases on Wednesday. The BoJ’s quarterly forecasts and Governor Kazuo Ueda’s words will grab more attention. The BoJ policy announcements are set to infuse massive volatility into the Japanese Yen.