GGPI stock trades at a discount to other EV pureplays. Its forward EV/sales multiple is about 3.9x. Moreover, investors should consider the EV brand awareness of Polestar, which is well-known in the American EV market. These factors make it a good buy.
GGPI stock trades at a discount to other EV pureplays
GGPI stock is an attractive buy in the electric vehicle sector, and is currently trading at a discount to its peers. With its SPAC deal with Polestar, which is expected to close later this month, the company has good exposure to this growing market. The company has about 29K vehicles on the road, and its FY21 revenues were $1.5 billion. With a discount of less than seven percent, GGPI is an attractive buy.
GGPI stock is known for its Polestar electric vehicles. Last quarter, it delivered 13,600 vehicles, nearly half of the 29,000 EVs it expects to deliver in three months by 2021. Moreover, GGPI’s take last year grew by 185%, compared to the same period in 2020. Despite its strong performance, management has recently revised its delivery guidance for 2022 from 65,000 to 50,000 vehicles. This reduction is in part due to a looming Chinese lockdown that could impact production.
The deal between GGPI and Polestar will further boost Polestar’s market share, and allow the company to make more investments in its product roadmap, technology roadmap, and international footprint, thereby capitalizing on the growing EV market. The merger will also result in a re-rating of GGPI stock. The company’s valuation will rise as a result, making it a compelling buy today.
Gores Guggenheim (“GGPI”) is an underrated name in the EV space, but the recent merger between it and Polestar will bring the company to the limelight. As a result, the GGPI stock is a bargain buy, relative to its peers. Going up alongside polestar will boost GGPI’s earnings as its stock price continues to fall.
Despite its discount to other EV pureplays, Gores Guggenheim has a large market cap, with billions of dollars in annual revenue. It is also aiming to enter the U.S. market, which could further boost its valuation.
GGPI’s forward EV/sales multiple of about 3.9x
This EV/sales multiple is based on management’s guidance and revenue projections. Based on this estimate, GGPI’s forward EV/Sales multiple is about 3.9x. The EV/Sales multiple of the company is based on a bull case (2023-2024) scenario. The bull case implies that the company will achieve about 50% of its guidance by 2023.
GGPI’s stock continues to trade at a discount to other EV pureplays. In fact, GGPI is a more compelling buy at a discount to competitors. Its acquisition of Polestar in 2016 gives it a distinct operational advantage over other EV pureplays. In addition, the company’s parent companies back the EV business.
GGPI’s Lender Reputable
Last September, GGPI and Polestar announced a proposed business combination. The deal carries an implied value of $20 billion. It is expected to add $1 billion to GGPI’s balance sheet, including $800 million in SPAC cash held in trust, $250 million from PIPE investors, and related transaction fees.
GGPI is currently trading at a discount to other EV pureplays. It is expected to close its de-SPAC transaction with Polestar in the first half of 2022. GGPI’s stock is undervalued versus other EV pureplays, but it offers a solid investment opportunity. The company’s expertise and operational efficiency make it a good buy. Moreover, it has two models in production.
Polestar’s brand awareness in the growing American EV market
As the growing American EV market continues to grow, Polestar has announced plans to open 25 more retail stores across the US by the end of this year. These locations will be located in cities including Atlanta, Dallas, Phoenix, and Detroit. Although these new stores will likely increase demand for Polestar vehicles, they won’t cause a sudden surge in retail sales. This is because competition from German automakers is still edging into this one segment.
The company is also working on a brand-new, EV architecture to help improve its production. The company is launching its new battery-electric vehicle at a Volvo Cars assembly plant in South Carolina in 2022. Its new vehicle will include advanced lidar sensors to help it navigate a highway.
Though it’s still a young company, Polestar is moving ahead with its growth plans. The automaker plans to launch in 30 markets by 2023. That’s up from 14 markets today. By 2025, the company aims to sell 290,000 cars worldwide. Today, it has only one model, the Polestar 2, but it plans to launch three more models in the coming years.
Polestar also plans to release at least one new battery-electric car each year. The first of these is the Polestar 3 electric performance SUV. The company’s future plans also include a compact SUV coupe based on the 2020 Precept concept car. The company is also planning to introduce a new model, the Polestar 5, in 2024. It will be an electric performance four-door grand touring car. It will showcase the company’s vision for the future.
In addition to these investments, Polestar will soon become a public company, with plans to list on the Nasdaq. As part of its plan, it has partnered with blank check company Gores Guggenheim, Inc. in order to raise capital from Wall Street investors. The company expects to close the deal in the first half of 2022.
Despite the growing demand for electric vehicles, many consumers still do not know much about them. According to the recent What Car? study, only 10% of American car buyers had heard of Fisker, NIO, or Lynk & Co.