Polestar IPO Valuation: Leo DiCaprio’s Titanic Electric Vehicle Aspirations

Gores Guggenheim (NASDAQ:GGPI) is the latest SPAC (Special Purpose Acquisition Company) stock to start revving its carbon-free engine. The blank check company completed its initial public offering (IPO) in March and announced its reverse merger with Electric Vehicle (EV) maker…

Polestar in September. GGPI shares are now trading at a roughly 7% premium to trust value.

With shares of Tesla (NASDAQ:TSLA) and Lucid Group (NASDAQ:LCID) up an astronomical 35% and 66% respectively since October, investors are clearly looking to capitalize on the next big electric vehicle-related thing.

For its part, Polestar brings a combination of good looking (and shipping) cars and established automotive backers. The company also brings celebrity cache, with Oscar winner Leonardo DiCaprio a key spokesperson. Like Leo’s own noteworthy film Titanic, Polestar embodies the best of technology, promising a carbon-free future. And with Polestar expected to come to market at a “discounted” valuation relative to its EV competitors, now’s the time to do your diligence on GGPI stock. Here’s a closer look.

GGPI Stock: An EV Maker With Titanic Aspirations

Volvo Cars (VOLCAR-B.ST), which just went public on October 29th, founded Polestar in 2017. Now before we talk solely about GGPI stock, I should say Volvo Cars isn’t the same as Volvo AB (OTCMKTS:VLVLY). Volvo sold its car-making division to Ford (NYSE:F) in 1999. Ford sold the business to Chinese automotive group Zhejiang Geely Holding (OTCMKTS:GELYF) in 2010. Volvo Cars owns roughly 50% of Polestar.

In addition to Volvo, as I mentioned earlier, Polestar has name-brand backer actor and environmental activist Leonardo DiCaprio (although the actor hasn’t publicly disclosed the size of his stake). It’s debatable whether The Wolf of Wall Street knows much about electric vehicles or growth stocks (maybe The Revenant is less about a bear and more an allegory for options trading in a bear market). But one thing’s clear: there’s a lot more to Polestar’s story than big dreams and celebrity backers.

Polestar is effectively a spin-off of an established global carmaker, Volvo. So, while technically a startup, the company is able to leverage its parent’s already-established factories, partners and distribution channels. Meanwhile…

 

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