Is Gores Guggenheim a Buy?

Special purpose acquisition companies, or SPACs, were hot commodities last year, raising over $160 billion in 2021 -- twice as much as the year before -- with hundreds more of them waiting in the wings today. Gores Guggenheim (NASDAQ: GGPI), which plans to take Swedish luxury electric vehicle (EV) maker Polestar public, has been one of those SPACs on a roller coaster ride. The SPAC expects to complete the merger with Polestar sometime over the next few months, and with Gores Guggenheim's stock rising in recent weeks after Polestar announced a series of high-profile deals (Hertz just agreed to purchase 65,000 of its EVs over five years), now is a good time to ask whether the SPAC is a buy.