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Greetings, lads. Elon’s TweetThreats and PP posts aside, EV stocks are melting faces this month. Consider the following…
Like you, SoFi didn’t fill my $RIVN IPO order. Nor did I catch the $LCID $15 dip. And sadly, I wasn’t able to get in on $TSLA at $40 two years ago.
But here’s our chance for an early entry into one of the only EV “pure plays” in the market:
Polestar — Volvo’s EV spinoff brand — estimates 2021 revenue of $1.2B and 29,000 vehicles on the road.
It’s now coming to market at a $20B valuation with $GGPI in Q1 2022.
Polestar is the only global EV ‘pure play,’ other than Tesla.
A little background…
GGPI is trading at a significant discount to TSLA and LCID, based on EV/sales multiples.
Peer Multiples — EV Pure Plays
Gores’ track record speaks for itself…
The EV Graveyard
The EV battlefield is littered with bodies.
They've been executing all year and have already delivered 29,000 cars. How many deliveries of the first-gen Roadsters had Tesla made in 2010 when they IPO’d? Answer: 1,400.
Polestar just makes cars, baby.
CEO Thomas Ingenlath: “We have a proven track record. We actually deliver cars. We have 29,000 deliveries this year.”
Claim confirmed. And look at that jawline.
Polestar estimates 65,000 deliveries in FY22 and revenues in excess of $3B.
The Polestar 1 came out in 2019. It’s a hybrid premium sports car that will set you back $155K… 619 horsepower, 738 lbs of torque, 0-60 in 3.8 seconds and clears the quarter mile in 12.0 seconds at 119.1 mph. They’re badass, and hard to find.
The Polestar 2 launched in 2020. Polestar 2… What is it?
Think Subaru Outback meets the Model 3 — with a dash of the minimalist Swedish aesthetic. It’s a sedan, but its higher ride- height and rugged body make it seem more like a crossover. It opens like a hatchback. Let’s call it a “crossover coupe.” Available now.
**Versus the Tesla Model 3**
The Polestar 2 compares favorably to the Tesla 3 in both price and range:
Federal tax credit: -$7,500
Range: 265 miles (single-motor base model)
Tesla Model 3
Federal tax credit: Does not currently qualify
Range: 262 miles (base model)
Upcoming Polestar lineup…
Political / Regulatory Tailwinds
The US and global political environment has never been more positive for investment in electric vehicles.
Last week, the House of Representatives voted 228-206 to pass the “Build Back Better” infrastructure bill totaling $1.2 trillion. This is all pending passage in the Senate, but it looks promising.
While watching the Braves clap the Astros in the World Series a couple weeks ago, I saw this TV commercial:
What’s our boy Cramer at CNBC have to say?
Cramer on $GGPI:
Ok, Cramer has a point here, but not necessarily about GGPI. Your downside risk on LCID, TSLA, RIVN is technically limitless. GGPI on the other hand, has a NAV (net asset value) floor of approximately $10 until merger.
What does Leo have to say?
Well, we don’t know a lot about Leo’s investment in Polestar, but Bloomberg reports:
What do the Island Bois and Hard Rock Nick have to say?
Hard Rock Nick:
TL;DR $GGPI is taking Swedish EV auto maker Polestar public. The cars are sexy AF, and match up well with the Tesla Model 3 on both performance and price. Polestar has 29K cars on the road and $1.5B in revenue in FY21, and still trades at a deep discount to other EV pure plays.
Disclosure: Long $GGPI, shares + options + warrants.
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