What's up guys and welcome back to the
channel.
So my first video of 2022 and today I
want to talk about GGPI Polestar stock.
This stock has some huge upcoming
catalysts that will finally see Polestar
become a nasdaq listed company ($GGPI) in the
coming months but that's not all GGPI
also has some catalysts coming in the
next few weeks
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now let's get into it. (NASDAQ:ggpi)
Gores 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.
Right from the start gores guggenheims
strategy was to identify an opportunity
to acquire
a potential market-leading company with
strong equity story
that will benefit from the growth
capital of going public and be enhanced
by the experience and expertise of
gore's and the guggenheim's extensive
track record of investing in and
operating businesses
Alec Gores is one of the world's most
successful investors with a long
improvement history when it comes to
spac mergers gores has brought several
companies public over the past few years
including luminar which i will talk a
bit more about later and matterport both
of these mergers were very successful
and seen the stock
make several hundred percent gains
post-merger
although they have both dropped again
recently these companies are still far
above the original
SPAC price of ten dollars at the time
of the ggpi
ipo back in march we had just come to
the end of the spac boom and many de-spac
companies share prices had begun
dropping
ggpi share price didn't move too much
until late september when gore's
guggenheim
announced the polestar merger
with that announcement ggpi stock gained
a little but the real movement came in
november when ggpi filed the nasdaq
listing plans the timing of this is very
important and i will look at this later
in the video
the pollster 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
backed by the volvo care group and
affiliates of geely
automotive also counts hollywood actor
leonardo dicaprio among its investors
polestar 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 brands
harnessing refined performance and
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 polestar 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
now the ev sector in general has had a
very turbulent year
we had the ev boom of 2020 and then in
2021 we've seen the likes of lucid make
huge gains before falling sharply both
in february
and again in december the rivian ipo
brought a lot of positivity back to evs
but after making huge gains that too has
dropped recently
and then we have tesla which has a
market cap of over one trillion dollars
after elon musk's 10 sell-off crashed
the share price
tesla has made it back to over one
thousand dollars a share once again
one thing about each of these is the
massive valuations
rivien for example is still valued at
over 75 billion dollars while tesla is
over one trillion
polestar is valued very modestly in
comparisons to all of these the ipo
share price places an enterprise value
of just 20 billion dollars on pollster
the transaction will result in
approximately one billion of cash added
to posters balance sheet to go towards
funding its business plan and future
model launches
so to have nearly one billion in cash at
its disposal will be significant and
posters merger valuation of 20 billion
means that it is three times its 2023
estimated revenue and 1.5 times its 2024
estimated revenue
and again this is very favorable when
compared to its u.s peers lucid than
tesla who have 10.8 and 6.5 respectively
for 2023
and 9.3 and 3.6
respectively for 2024 revenue estimates
now this investors presentation is from
its merger announcement in september so
these figures are even more impressive
in comparisons right now tesla's current
share price is over 35 percent above the
price used here while lucid is now 50
higher too
was trading at ten dollars at the time
now this is up
to eleven dollars so that is just a ten
percent rise
and therefore the current price is still
less than two times its 2024 estimated
revenue this stock has still got huge
gains to make yet and pulse there also
compares very well to neo and xping
who each have market caps fair in excess
of posters 20 billion valuation
when it comes to projected growth over
the next four years we can see the
polestar is second
to only lucid on annual growth rate
projections
and it's worth noting here that tesla is
the lowest of these
but that is because tesla is very much
the market leader
tesla is the most established and is
without a doubt the leader in the ev
sector now this is something that i've
spoke about on the channel many times
when it comes to these new emerging
sectors
the ev sector is still very new consider
that tesla is the market leader and
number one company in the industry and
yet they were only founded 20 years ago
and they have only really taken off in
the past few years
compare this then to the likes of ford
which was founded nearly 100 years ago
and yet over the past year ford ii has
managed to make gains of over 150
percent so when you have these new
emerging sectors there will be a number
of new entrants to the market but over
time only a number of these will succeed
and with more and more legacy car
manufacturers investing in ev the market
is going to get very competitive very
soon and not all of these ev
manufacturers will make it
that said there's a lot to like here
and a far more stable story than most
industry participants have to offer
ev bulls
need to seriously consider pulsed air at
the current price and even investors
less optimistic towards the sector
should be taking a long look
polestar is operating across the globe
right now and expanding exponentially
too
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 and rumors over the past few
days across social media is the poster
have met their targets for 2021 but i
will wait until there is an official
announcement to confirm this
over the next four years it's expected
that the pollster 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 poster 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
the pollster 2 has just been named as
the top care of 2021 by new zealand news
media company stuff
so just how good is the polestar 2 well
put it this way if the tesla model 3 is
considered the benchmark in the ev
segment then the pulse there almost
matches it for energy efficiency betters
it
for back road fun and runs rings around
the american care in terms of luxury and
quality but importantly they also
compared the polestar 2 to ice cars 2.
if you ignore the fact that it is an ev
it is also up there knocking on the door
of established european mid-size sedans
like the bmw 3 series and the mercedes
c-class
however it is also considerably cheaper
than those highly regarded ice models
now this article goes on to list the
features and options of the p2 and
specifications and pricing as well as
the value for money
view of the care i will put a link in
the description for anyone who wants to
check that out
overall they say that regardless of how
you want to configure a p2
all models are built to an incredibly
high standard are great to drive and
look fantastic
and they happen to be evs with good
ranges all of which is more than good
enough for stuff to pick it as their top
car of 2021.
overall over the past few years we have
seen the shift towards electric cars
really take off
but just how much of the market is
actually being captured
by electric vehicles
norway can be used as a key indicator of
the progress that can be made rapidly
just this week it was published that 65
of all vehicle sales in norway in 2021
were evs with tesla being the top
selling brand overall
i spoke recently about the importance of
the norway market
although this is a country with a small
population it has the world's highest
proportion of electric vehicles which is
very interesting considering that norway
is an oil producing country
but the norwegian government have used
their oil wealth to allow huge tax
breaks from what is imposed on ice cares
this tax break is expected to help drive
the proportion of overall electric sales
as high as 80 in 2022 ahead of a
deadline to end petrol and vehicle
powered cars by 2025.
so it is no wonder that neo chose norway
to be the first country outside of china
in which to expand and why pollster rate
their near neighbor as a huge
opportunity
let's not forget that pollster is a
swedish company and geographically
norway and sweden are side by side
we can see here that just five years ago
evs made up little more than 10 percent
of norway's new care sales but within
the next three years evs will make up
100 of the market
but that's not all if we add in the
number of hybrid car sales too this
brings it up from 65 to 87 of the market
in 2021
according to ceo thomas
engelath
norway is the country with the biggest
openness to evs the biggest
understanding of what it takes to drive
an ev and the most welcoming for having
an alternative
pole stairs luxury sedan was the 10th
most popular car model in norway in 2021
and it will debut its poster 3 suv in
2022
and they have much higher expectations
for the next poster models
So will poster be a tesla killer?
maybe in time but for now poster have
their sites firmly set taking on porsche
polestar plans to be bigger than porsche
with the introduction of three new
electric car models in the next three
years that will compete with similar
models of porsche
as we already know Polestar is targeting
sales of 290 000 cars by 2025 which is
10 times its sales of 2021.
with two award-winning cars on the road
today in 14 active markets across three
continents we seek to expand to 30
markets by 2023 we are thrilled about
the targeted additions of three new
premium electric cars to the lineup in
2024
starting with the first suv expected
this year
the suv is designed to take sales away
from the porsche cayenne
the car will be built at volvo's factory
in south carolina and exported to other
countries from there again this is very
important to have the cars being built
in the u.s
at the moment the majority of production
is a pole stairs facility in china and
with the uncertainty around china over
the past few months it will be very
beneficial for Polestar to have a u.s
production facility the suv will be
available
in single and dual motor versions
and will offer autonomous highway
piloting powered by the best class light
air sensors from luminaire and
centralized nvidia computing power if
you remember i mentioned luminaire
earlier in the video luminary is one of
the companies that alec gores has
brought public so the gore's connection
here could prove to be hugely beneficial
to both companies over the coming years
then the polestar 4 a slightly smaller
battery-powered suv is intended to
compete against the porsche
and finally the p5 in 2024 which is
aimed at taking on the other porsche
models so Polestar clearly have their
sights set on taking porsche's share of
the market one part of that plan is a
decision by the company to build its own
electric motors in-house with an
estimated output of 603 horsepower
that's more than the base taken
and tesla model s pulse there says its
motor known by the codename p10 will be
exclusive to the brand so it can tailor
to its precise requirements of each
model it builds according to car
magazine the suv market is projected to
grow 46
between now and 2026 so positioning
itself to take advantage of that market
is a smart
business decision by pulsar of course
every other manufacturer is targeting
the same market so over the next few
years those shopping for an electric suv
should have a wide array of choices
available to them
so will people pay that much money for a Polestar?
the answer is that porsche has
experienced record sales in the past few
years and its cars have always come with
premium price tags so the real question
is whether poster will be able to stand
out in a crowded market segment and this
is something that i personally feel
poster will definitely be able to do
so what major catalyst will drive polls
there in the near term
the most important catalyst for ggpi
polls there right now is the merger date
spax tend to spike up when they announce
their acquisition target like with lucid
back in february
and when they make their filings with
the sick
like what happened at ggpi back in
november when the price ran up to 16
dollars very quickly the next catalyst
for ggpi
will be when they set their merger date
and then there should be a continuous
slow price increase right up until the
merger date
like playboy earlier this year for
example we have seen this happen time
and time again with spax so i don't
expect anything different here we
already know that the merger will take
place in the first half of 2022 and it
is highly likely to happen during q1
so we could have an announcement within
the coming weeks
for example just look at yesterday dwac
digital world acquisition corpse back
set the date for the launch of their app
in february and within one hour the
stock had gained more than 20 percent
and although dwac has given up some of
those gains today
this stock is still far above what it
was early yesterday
so this shows just how important these
announcements are to specs so does ggpi
have more near-term catalysts
yes they do the next most important
catalyst for pollster is that they meet
their sales and delivery targets for
2021. it is rumored that they have been
beating their estimates and if that is
true
then it is highly likely that the share
price will increase significantly on an
official announcement
so guys that brings us to the end of the
video if you've watched all the way
through please hit the like button it
really helps the channel out a lot
i really like the stock and think that
it has huge potential and despite the
current market i am expecting big things
from ggpi pulse their stock in 2022.
if you want me to continue making poster
videos then please drop a comment and
let me know what you think is going to
happen in the coming months and make
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