- Gores Guggenheim remains on top of the charts for social media searches.
- Polestar stock is also in vogue as GGPI is taking Polestar public via SPAC deal.
- Polestar shares see a massive spike in interest after the Superbowl ad.
Gores Guggenheim SPAC, the future Polestar stock, remains one of the most trending names on the various social media sites after its Superbowl ad on Sunday. Investors' love for EV stocks may have waned in 2022, but the sector is not dead and buried. Yesterday proved that fact with some strong rallies from Tesla (TSLA) stock, +5%, Rivian (RIVN) stock, +6%, NIO, +8%, and Lucid Group (LCID), +5%. This was a strong outperformance versus the NASDAQ, which closed up by 2.5%. Gores Guggenheim (GGPI) stock closed Tuesday just under 4% higher at $11.49.
Polestar debuted an ad during the Superbowl poking fun at Tesla and Volkswagen. Gores Guggenheim is taking Polestar public via a SPAC deal that is due for completion in the first half of 2022. Polestar is backed by Volvo and Geely of China. It produces Scandanavian inspired sleek electric vehicles akin to Volvo.
Gores Guggenheim Stock News
Polestar stock still does not have a ticker as far as we are aware, but GGPI remains in the news. The Superbowl ad promised no dieselgate and no conquering Mars. A dig at rival VW and Tesla. Tesla CEO Elon Musk appeared to take it in his stride and responded with a laughing emoji tweet. Apart from that though, recent news flow has been light.
One piece of news this morning says that Polestar will debut a bonded aluminum platform for the latest Polestar 5 GT in 2024. According to InsideEVs.com, "Exclusive to Polestar, the brand-new, bespoke platform has been developed in-house by over 280 engineers from the company’s UK R&D team based in Coventry, England. This team previously worked on projects such as Formula 1 race cars, low-volume vehicles and sports cars. Polestar has chosen bonded aluminum, because it is lightweight and rigid."
So far, Polestar is relatively rare in the US but is more widespread in Europe and the UK. The link with Volvo gives Polestar a huge advantage over new entrants Lucid (LCID) and Rivian (RIVN). It appears from the commentary that Polestar will piggyback on Volvo's delivery and sales network and does not have to build these up from scratch. Also, it will likely use Volvo's service network, again another huge advantage.
Gores Guggenheim Stock Forecast
$10 is obvious support. SPACs nearly always have a $10 cash floor, which is returned to investors in the event of a target failure. We can see that in the chart with $10 showing the largest amount of volume. Straying too far away is always risky. When investing in a SPAC, look to get in as close to $10 as possible as that lessons your downside. Recent super spikes in other SPAC deals have driven up return expectations to unrealistic levels. Witness Lucid Group also going public via SPAC and trading up to near $60. Crazy stuff, and at the time it was hard to argue with the enthusiasm and momentum.
Now markets have returned to some form of reality, meaning more analysis must be done. Trading on pure momentum can be profitable if done correctly, but knowing when that momentum has stalled is key. In the case of EV stocks, the macroeconomic backdrop has turned against them. For at least the next quarter, the sector is likely to struggle.
That does not mean some strong momentum rallies cannot happen. We witnessed one yesterday. It is important to recognize the signs. For us, we look to safety assets: the dollar, gold, bonds. If all three are rallying, then it pushes the risk-reward for high-risk growth stocks to negative. Yesterday we saw a relief rally, so getting in quick can reap some tidy profits.
For GGPI, look at the 15-minute chart. The recent volume has been just above $11. There is a volume gap below $11, so beware. Prices can move quickly through low-volume areas. What is obvious is that volume picks up again near $10, the cash level.
GGPI chart, 15 minute
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 trims losses and approaches 1.1380
The US Dollar now succumbs to the re-emergence of the selling pressure and allows EUR/USD to recoup part of the ground lost and approach to the 1.1380 zone on Thursday. Earlier on Thursday, the ECB matched estimates and lowered its rates by 25 bps.
GBP/USD extends the daily recovery, looks at 1.3300
The upside impulse in the British pound remains everything but abated and now propels GBP/USD to the upper end of the range, shifting its attention to recent yearly peaks near 1.3300 the figure.
Gold breaks below $3,300, daily troughs
Further improvement in the sentiment surrounding the risk-associated universe put Gold prices to the test on Thursday. Indeed, the troy ounce of the precious metal faces increasing downside pressure and breaches the key $3,300 mark to hit new daily lows.
Crypto market cap fell more than 18% in Q1, wiping out $633.5 billion after Trump’s inauguration top
CoinGecko’s Q1 Crypto Industry Report highlights that the total crypto market capitalization fell by 18.6% in the first quarter, wiping out $633.5 billion after topping on January 18, just a couple of days ahead of US President Donald Trump’s inauguration.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.