- 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
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.