Let's talk about the $GGPI/Polestar merger.
What's up investors and welcome back to
the channel, it's been a few weeks since
i've uploaded anything on this channel
and in that time there has been a lot of
news for Polestar. GGPI stock has now
moved so much closer to becoming $PSNY
and despite a terrible market and
falling share price there are many
reasons to be optimistic we now know a
lot more about polestar's upcoming
models and finally a date for the merger!
In this video I will look at the very
latest developments and some of the
risks that are present over the next few
weeks it has taken a lot of effort to
come back to youtube this weekend so if
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i want to point out that i'm not a
financial advisor and this is not
financial advice at the end of the day
you make the decisions whether to buy or
sell any stocks I am just trying to
provide you with as much information as
possible now let's get into the latest
news
so earlier this week Polestar announced
that the Polestars first suv will have
its world premiere in october 2022
marking polestar's entrance into one of
the highest margin and growth segments
in the auto industry particularly in the
united states
so this is the third poster model to
date but the model but this model is the
one that the company is relying heavily
on over the next 24 to 36 months to
drive sales with the polestar one being
a premium luxury sports car
the emphasis on sales over the next
three years will focus heavily on the
poolstair 2 and poster 3. with the
majority of sales coming from these two
models and even by 2025 it is expected
that the Polestar 2 and 3 will still
account for up to 65 percent of
Polestars overall sales old stair 3 will
feature a dual motor drivetrain and a
large battery enabling a range of over
370 miles or 600 kilometers this is the
first poster model to be built on the
spa2 platform and will offer ai assisted
driving powered by lidar sensor from
luminar and nvidia computer power
customers will be able to order the
polester 3 at initial launch markets
from the day of the premiere in october
and production is expected to begin in
early 2023 in the united states and
china
which means that this will be the first
Polestar model built in the united
states it will be made at volvo's plant
in south carolina alongside the next
generation volvo xc90
holster aims to launch a new ev every
year for the next three years
the pulse they're three four and five in
2022 2023 and 2024
the brand also aims to expand to at
least 30 global markets by the end of
2023 as part of its plan to grow sales
tenfold from 29 000 in 2021 to
approximately 290 000 by the end of
2025.
and it has been a big week all around
four Polestars this week with the
polestar 5 also having a big reveal this
week too although this model is not due
to be released until 2024 we have had a
look at the polestar 5 thanks to some
european patent renderings where the
thin camouflage
confirms that the polestar 5 will look
just like the precept concept
allstar is developing its own platform
for the pulsed r5 which will be poster
exclusive design the platform is being
developed
for dedicated electric vehicles and will
feature
bonded aluminium construction which
brings weight and strength benefits
compared to more conventional steel
construction
a vehicle with low weight and rigidity
means improved range and handling as
i've spoken about before on this channel
poster sees porsche as its main rival
and with the polestar 5 is looking to
take on
the porsche taken and the tesla model s
while the 5 is due in 2024 polstar will
be launching the pulser 4 in 2023 so the
next two or three years will be very
exciting for this company overall
now one of the most important questions
on investors minds over the past few
months has been the question of when
this merger will eventually take place
and having several delays and amendments
to the company's submissions we finally
have a definitive date
in the past week it has been announced
the meeting is scheduled to be held
virtually
by a live webcast on june 22nd at 9 30
eastern time
looking at the filing there is a link
here to the special meeting in the sec
filing
and i've included this in the
description below
and at this meeting anyone who held
stock
at the close of business on may 18th
will be asked to approve the business
combination between gore's guggenheim
and polster
when you click on the link it will bring
you to this website
and then there is a separate meeting at
10 am
for the warrant holders and i've
included this link in the description
down below too
the company's board of directors
unanimously recommends that the
stockholders vote for the approval of
the business combination and each of the
related proposals described in the proxy
statement
now something that needs to be kept in
mind is that ggpi stock is currently
trading at its ten dollar price floor
which is the standard for pre-mergers
back stocks
as of right now at this price ggpi stock
is trading at zero risk share price but
once the merger takes place and this
stock begins trading as polls there
with the ticker psn y then the price
floor disappears and this stock could go
down as well as up
if this is something that you would like
me to talk more about then drop a
comment down below and let me know that
this is something that you are
interested to hear about
a lot has happened in the market since
this merger agreement was first signed
so if you would like me to talk more
about valuations then smash the like
button and drop that comment below
remember that at the time this agreement
was signed in 2021 it placed an
enterprise valuation on Polestar of 20
billion dollars
now for the first time in nearly one
year due to the share price dropping
back to 10
the valuation has once again dropped
back to its enterprise value of 20
billion
this is at a time when the latest
inflation figures have just been
released today showing that the consumer
price index rose 8.6 in may which is the
highest increase since december 1981.
the effect that this had had on the
stock market today alone has seen
several indices massively down
with the nasdaq alone dropping over
three percent today
in other poster news back in april there
was an agreement reached between pole
stare and the cara rental company hertz
for the delivery of 65 000 evs over the
next five years and just today there has
been an announcement that polstar has
delivered the first of these 65 000
cares to hertz
this partnership is one of the largest
sales orders
for electric vehicles ever made
the other ledge order has been a similar
deal between hertz and tesla
for me this confirms polestar as the
number two pureplay ev brand on the
market today behind tesla
however like tesla poster is operating
in several markets with a footprint in
more than 30 countries worldwide
and is constantly expanding
Polestars delivery estimate of 50 000
units in 2022 bar exceeds any other ev
company outside of the chinese market
with the exception of tesla
ceo thomas ingelat said that our
partnership with hertz is an exciting
milestone that provides the opportunity
for a significant number of potential
new customers to experience an ev for
the first time and this will be a pole
stair
with expectations the polestar will sell
50 000 vehicles this year poster has
taken more than 32 000 customer orders
for the polestar 2 since the start of
2022
representing an increase of 290 percent
versus the same period in 2021 so the
company is definitely on track to
achieve their goals
hertz is initially receiving pulse their
two models and the agreement extends to
forthcoming models like the polester iii
in addition hertz is adding the pulse
there one electric performance hybrid to
its dream fleet
but for me the most important news that
we have had in months has been the
update regarding the special meeting of
stockholders and we will finally see the
merger between ggpi and Polestar take
place
after so many delays this will be
concluded within the next few weeks so
what do you think will happen once the
merger takes place do you think that
this stock will go up or go down
before I give you my conclusion on this
talk I would greatly appreciate if you
could smash the like button and hit the
subscribe button if you're new to the
channel
amazingly eighty percent of my viewers
are still unsubscribed for my conclusion
allstar is currently one of the lowest
risk ev stocks on the entire market
there is potential here for very quick
profits leading up to the merger date
when there will be a lot of interest in
this stock but there are risks once the
merger takes place
the ev sector has taken a bashing so far
in 2022 and at times I do think if it
was not for this 10 floor then this
stock would be down massively too so
holding on to this stock on june 22nd is
in my opinion far riskier now than it
would have ever been before
but we have also seen some success
recently too with spark mergers on the
merger day whether the stock is
undervalued or overvalued on the current
price for long-term projections is very
dependent right now on market conditions
lowering inflation and a terrible market
in general certainly do not make this a
good time to be trying to estimate the
fair value but polstar is not overvalued
when compared to its rivals
of course this is just my opinion and
remember that I am not a financial
advisor and this is not financial advice
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