- PSNY stock has replaced GGPI as the merger with Polestar completes.
- Polestar began trading last Friday on the Nasdaq under the ticker PSNY.
- Polestar is a Volvo and Geely-backed EV maker.
UPDATE: Polestar stock is reeling in its second day of trading in the US. PSNY shares are off a surprsing 11.3% on Monday about 90 minutes into trading, trading for $11.53. This is surprising, because PSNY shares rallied 14% on Friday, its first day of trading since merging with GGPI, to close at $13. Now Polestar has given up most of that rally. GGPI closed at $11.23 on its final day of trading, Thursday, June 23. The Nasdaq is off about 0.6%, which may be some the reason for the crash in share price. Rival Tesla (TSLA) is up 1.3%, and Nio (NIO) is down 2.8% at the time of writing.
Polestar (PSNY) stock began trading last Friday on the Nasdaq as it completed its SPAC merger deal with Gores Guggenheim (GGPI) to take it public. The deal is one of few SPACs (Special Purpose Acquisition Companies) this year as the once surging SPAC space comes crashing back to earth in a tightening monetary environment. Polestar joined Lucid Group (LCID) as a fellow SPAC deal in the electric vehicle space and Rivian (RIVN) as a highly anticipated EV IPO. Polestar will be hoping it does not follow a similar performance as both are markedly lower than their IPO price debuts.
Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries
Polestar Stock News: The story so far
Polestar is an electric vehicle spin-off from Volvo. The Swedish auto manufacturer is itself backed by the Chinese conglomerate Geely, and both companies Geely and Volvo are the main backers of Polestar. Polestar (PSNY) is a relative newcomer but does already have models in production. The company has a larger presence in Europe than in the US, but this SPAC deal is set to change all that, and visibility has already increased due to Polestar's Super Bowl ad.
