What's up investors and welcome back to
the channel today I want to talk about
GGPI Polestar stock!
this is an EV stock and if you follow
this channel
you will know that this is one of my
favorite stocks!
Although I cover a lot of stocks on the
channel Polestar is a bit special!
This $GGPI stock does not get as much
attention as lucid ($LCID), Tesla ($TSLA) or Nio ($NIO)
but have no doubt about it this is one
of the most advanced ev companies out
there.
a real EV company with real vehicles
that is expanding rapidly across the
globe
this is a company that has been labeled
as a tesla killer over the past couple
of years.
and I have no doubt about the potential
of this company that is still very
low valued compared to its peers.
But hold up, In order for me to give you a
true account of this company I need to
start with who exactly Polestar are
and why this stock is such good value.
As I said a moment ago, this is one of my
favorite stocks on the channel so for a
detailed look at post there check out
this video: where I go through the key
facts that every GGPI Polestar investor
needs to be aware of.
As always guys this is not financial
advice i'm not a financial advisor but
if you do enjoy this content or find
value in this video can you kindly show
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with anything that I have to say then
drop me a comment and I will reply
now let's get into a brief overview of
the company for anyone that's new.
GGPI gore's guggenheim went public with
its ipo in march 2021. this back is the
latest back created by serial
entrepreneur billionaire alec gores and
the guggenheim investment group
the Polestar deal will be supported by
cash proceeds of around 800 million
dollars from gore's guggenheim and
includes a pipe or private investment in
public equity of 250 million dollars
from top tier institutional investors
Polestar (NASDAQ: $GGPI)
backed by the volvo car group and
affiliates of geely
automotive also count hollywood actor
leonardo dicaprio among its investors
Polestar/GGPI is a global pure play premium
electric vehicle company based in sweden
with a mission to produce progressive
electric performance cars designed and
engineered without compromise
they say that they are designed focused
electric performance care brand
harnessing refined performance at
cutting-edge technology
determined to improve the society we
live in by accelerating the change to an
electric
climate neutral future they are trying
to achieve a net zero greenhouse gas
emissions
while leading the development of new
technologies
the company was originally founded in
1996 as a racing company and developed a
partnership with volvo before being
acquired by the volvo group in 2015.
they announced their polestar one care
in 2017 and the pole stair 2 in 2019
in 2019 they opened their poster
production facility and by 2020 were
making their first sales
as of 2021 the company is operating in
select countries across europe and the
united states and canada but are
planning major expansion over the next
two years across europe asia and the
middle east polestar is now well ahead
of and more established than most of the
EV competition in terms of sales with
approximately 29 000 sales in 2021
and this is expected to rise
to see huge growth rates over the next
few years
over the next four years it's expected
that the polls there 2 3 and 4
will be key drivers of volume from 2023
onwards mainly from the launch of the
latter two models resulting in
significant sales increases
and Polestar is expected to see huge
revenue increases in these years
reaching a 20 gross profit margin by
2023 and achieving positive free cash
flow in 2024.
earlier this week poster revealed a new
concept care that redefines sports
roadsters
named the polestar o2 this is pulsar's
vision of what an electric sports
roadster should be
according to poster ceo thomas ingelat
the polestar o2 is the hero care for our
brand it opens the door to our secret
chamber of future potential this is a
taste of what we can design and engineer
with the talent and technology that we
have in-house
it looks incredible and being able to
lower the roof and not hear an engine
promises a superb sensation
and let's be honest
just look at this ev it looks incredible
once again poster have made a stunning
looking vehicle
this is the vision of a new era of
sports car "Polestar o2"
and intuitive dynamics are benefits of
the bespoke bonded aluminium platform
which is adapted from the poster 5
developed in-house by posters r d team
in the uk
according to Polestar's head of design
maximilian mazzoni this car is a
meeting point between technology and art
between precision and sculpture with a
determined but not aggressive stance.
now as usual with this poster model
sustainability is at the center of focus
using a new thermoplastic model material
with recycled polyester as the core
material used for all soft components of
the interior
this fits perfectly with pulsar's vision
that materials should be recycled not
down cycled but something that I found
most intriguing about this was the fact
the poster o2
features an autonomous cinematic drone
integrated behind the rear seats this
drone can be deployed while the car is
moving to record the perfect driving
sequence
the drone operates autonomously
automatically following the care at
speeds of up to 90 kilometers or
approximately 55 miles per hour
now I have to admit that this is all a
bit gimmicky like in the real world when
are you ever going to be using the drone
while you're driving don't get me wrong
it's a nice touch
and it's autonomous so it won't impact
driver at all but like 99 of the time i
cannot see any use for this
however this has created quite a buzz
this week which tells me two things
first of all this has been designed
with the designers wanting to create
something for a world increasingly
driven by social media so they clearly
have the finger on the pulse and know
how to grab attention
secondly
these guys are not afraid to think
outside the box I don't know of anything
like this being done before and yet it
really is very very simple
as I have already said poster plan to
launch one new model each year for the
next three years with the pulstar 2
already being in production and being
sold the pulser 3 will be the company's
first suv and is due to be released this
year in 2022
the pulse there 5 is planned for 2024
and this will be a performance four-door
gt
based upon an evolution of pulsed air
precept design
so that'll look great I love the look of
the precept
but very little is known or at least
confirmed yet about the poster iv
this model is expected next year
in the past few days some photos have
surfaced which appear to be spy shots of
a mule test
for the pulse therefore this is
essentially the vehicle's running gear
hidden beneath a makeshift body
in this case the body appears to be a
modified volvo xc40
with the poster 4 set to arrive in 2023
we should see the first prototypes
using the final body design later this
year
so what effect does this have on the
overall investment thesis of there well
you might remember that the poster one
and two were both released in 2019 and
2020 and so far these have met
production and sales goals
but look at this graph although the
post-air 2 will still be the main focal
point of the sales these newer models
will be crucial to the performance of
Polestar achieving their targets by 2025
these new models will be expected to
account for nearly two-thirds of overall
ev sales so it's crucial that these are
very well received
when we look at the chart over the past
six months we can see that GGPI has been
closely following the EV market with the
big spike up here in november before
declining throughout december and
january now this chart looks exactly the
same as lucid's a big run up and then
declining
and rivian's ipo back in november 2
then it spiked and started to decline
and of course tesla hit its all-time
high back in november as well
but when we look closer at the shared
since january we can see that GGPI stock
actually hit rock bottom here for a few
weeks trading at only ten dollars
now for those of you who are not aware
of it this is the floor for a
pre-merger's back stock
until the merger is agreed upon the
shareholder vote gets passed and the
deal gets finalized until all of that
happens these stocks are worth a minimum
of ten dollars so this is a bargain
price
the stock spiked up to nearly 13 dollars
two weeks ago and now it's back at 11. i
think that this is a great value entry
point right now
now remember that this merger is said to
take place at some point during the
first half of this year
we are in march now so I would expect to
be hearing some news about this fairly
soon and I feel that once we get news
the share price will get a significant
bump up
but to be honest with all the world
tension right now i'm in no rush for
this to happen
i do honestly hope that management wait
a little bit longer if needs be in order
to go public at a time with renewed
optimism in the market
instead of all the red days that we are
currently seeing
that is my analysis of what I think but
what do you think of GGPI stock and
where do you think the share price of
pulse there will be within the next
three or 12 months drop me a comment and
let me know what are your plans for this
stock
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blessed day