Let's talk about Polestar. what's up
investors and welcome back to another
video.
it's been a long time since I made a
GGPI ($GGPI) Polestar video but things are
finally beginning to happen and there is
lots of good news this week that I will
be looking at in today's video.
Of course, with the stock market crashing
i will talk about the positives and the
negatives regarding this stock and i
will look at the potential risks too
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i'm not a financial advisor and this is
not financial advice.
Now let's get into it
If you're new to this stock GGPI ($GGPI)
gorgeous guggenheim
went public
with its ipo in march 2021
the firm is backed by the serial
entrepreneur billionaire alec gores and
the guggenheim investment group who have
a long history and track record of
successfully
investing in and operating businesses
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 they are a design focused
electric performance car brand
harnessing refined performance and
cutting edge technology
polestar which is backed by the volvo
car group and julio automotive also
counts hollywood actors leonardo
dicaprio and oscar isaac amongst its
investors
the company is determined to improve the
society we live in by accelerating the
change to fully electric climate neutral
and they are trying to achieve a net
zero greenhouse gas emissions while
leading the development of new
technologies
looking at the most recent investors
presentation
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
in 2017 and the Polestar ii in 2019
in 2019 they also opened their Polestar
production facility and by 2020 were
making their first sales
Polestar is operating in select countries
across europe north america and asia but
are planning major expansion over the
next two years
further increasing their reach across
europe asia and the middle east
now I just want to take a look at this
before getting into the most recent
developments for Polestar
but as a reminder that unlike most ev
companies also are already producing and
delivering a large quantity of vehicles
when we look at ev companies in general
their delivery figures are extremely low
with the exception of tesla
who are miles ahead of everybody else
but last year Polestar delivered 29 000
units
and had been planning to deliver a
further 65 000 units for 2022. now there
has been an update to this which I will
look at in just a moment but if you
compare this for example
with lucid motors who delivered a total
of 360 vehicles in the first quarter of
this year
we can see the scale
the Polestar have already achieved in a
short time
now this is not me taking a swipe with
lucid
some of the most talked about ev stocks
on the market
are yet to even begin sales and
deliveries
but the fact remains that at the moment
ev stocks have nose dived
lucid motors is down over 70 percent
from its high just six months ago
rivien has crashed over 80 percent
and even the mighty tesla has dropped
almost 50 percent from its 52-week high
which means that once again elon musk is
not the richest man in the world
so this market drop has provided some
opportunities in the ev sector
but looking again here we can see that
the future predicted sales for Polestar
over the next 18 months are dependent on
two main models the pulse there too
and then the not yet released pulse
there three
but then just yesterday Polestar 3 was
officially confirmed for october 2022
debut
the official announcement is hidden in a
press release summarizing sales and
financial results for the first four
months of the year which I will look at
in a moment as well as the all-important
sec filings regarding the upcoming
merger date so stick around for that
the company believes that it has the
potential to grow significantly with the
launch of pulsed air 3 as the suv market
is one of the highest growth
and margin
segments in the automotive industry
today Polestar 3 will be manufactured in
the us and china
and will stand out amongst other suv
offerings
and boost the strong growth trajectory
to take us into the next phase and that
is according to ceo thomas ingelat
but on thursday Polestar reported a
strong start to 2022 with record sales
continued growth and market expansion
guys if you've watched this far into the
video thank you so much for watching i
really appreciate it
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help me hit my targets by liking this
video and commenting below
i would love to hear your thoughts on
what you expect from polestar over the
next five years but also give me your
thoughts on the current stock market
crash and how long you think that this
market crash will last
supposed recorded sales for the first
four months of 2022 as well as excellent
global order intake fueled by continued
expansion into new and existing markets
in the first four months of the year
vehicle sales more than doubled to
approximately 13 600
and the company's order take more than
troubled
to nearly 23 000 compared to the same
period in 2021 now let's remember that
they delivered a total of 29 000
vehicles in 2021
so they now have orders for over 23 000
within just four months is a massive
increase
and that would be perfectly in line with
the company's previous plan to deliver
65 000 units in 2022
but Polestars management are being
extremely prudent and realistic with
their projections which is something
that a lot of ev companies are not doing
in light of lockdowns around the world
management have reduced their 2022
forecast from 65 000 down to 50 000
vehicles now for me this is a huge plus
management are not trying to pump the
stock
they're actually being very cautious
with their low projections and I feel
that these projections are something
that the company can easily achieve
this is a global company after all
Polestar increased its global presence to
23 markets up from 19 at the end of 2021
putting the company on track to meet its
target of 30 markets in aggregate by the
end of 2023 new markets in the middle
east and europe will be joined by spain
and portugal
and plans are underway to begin
operations in israel
and italy later in 2022
but let's not forget the deal as it says
here 65 000 vehicles with hertz over the
next five years
that one deal alone averages 13 000
vehicles per year
so make no mistake about it when it
comes to pure play ev
companies Polestar are miles ahead of at
least 90 percent of their competition
but in terms of valuation when we look
at the market capitalization of this
company compared with its rivals how
does it really match up and is pulsed
air undervalued in today's ev market so
let's remember that when this merger was
originally agreed upon ev stocks were
still flying high on massive valuations
so it's possible
that given the current market conditions
Polestar GGPI ($GGPI)
could actually be overvalued and let me
explain this
the merger values pulsedair at 20
billion dollars
while the share price is at 10 per share
and this is still very low compared to
its rival companies
who even after the drop in value are
still trading multiple times higher
for example lucid has now dropped to 29
billion
while rivien has dropped to a valuation
of 25 billion dollars
but as I said already these companies
are not yet producing significant
numbers while polstar is still miles
ahead
and when it comes to profitability
Polestar is still years ahead of the
competition
with profitability expected
within the next four years
but this does not come without risks the
market crash of 2022 has seen major
players like tesla drop about 500
billion in value
and we also see
legacy automotive manufacturers such as
ford dropping to only 50 billion dollars
meaning that they have a p e ratio of
about four
which is not fair above pole stairs
projections either
so for this merger to be completed in
the current market conditions could be
very risky
but at the moment while the stock is
still a spack the downside is fully
protected
remember that these special purpose
acquisition stocks are bound to rules
generally meaning
that the stock floor is 10
now considering that the stock has
fluctuated fairly regularly in this
channel between the ten dollar stock
floor and twelve dollars there is a risk
of only about one point two eight
percent
while a possible gain of about twenty
one percent could easily happen
usually with these types of mergers the
stock price will go up in the weeks and
especially the days before the merger is
completed and this could easily happen
again here even for the short term
investors who are not looking at this
for the long term hold
and just looking for short-term gains
this is one of the best downside
protected stocks on the market
now everything could change after the
merger is completed of course but for
now ten dollars is this stock's floor
so the merger date is very important and
GGPI ($GGPI) Polestar have repeatedly said that
their expectation is to complete this
merger during the first half of 2022
and over the past several months they
have filed several form f4 amendments
and the latest of these was filed just
yesterday
and in this they have once again
reiterated their expectation to close in
the first half of the year
but if we look a little bit closer at
the details we can see that these
amendments are becoming far more
frequent
which i'm going to see as a good sign
that they are getting very close to
having this accepted by the sick
either way this must be concluded within
the next five weeks as the deadline
which was previously may 27th has been
pushed out to the 24th of june
so this merger is nearing its completion
for sure
before I give you my conclusion on this
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for my conclusion polestar is currently
one of the lowest risk ev stocks on the
entire market there is potential here
for quick profits leading up to the
merger date
when there will be a lot of interest in
this stock whether the stock is
undervalued or overvalued at the current
price for the long term projections is
dependent right now on the market
conditions
but it is not overvalued when compared
to its rivals
of course this is my opinion and
remember that I am not a financial
advisor and this is not financial advice
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