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• Gores Guggenheim (GGPI) stock is surprisingly cheap, considering the supreme quality of Polestar's vehicles.
• Moreover, a potentially game-changing partnership should bring more attention to Polestar.
• Investors should add to their long positions in Gores Guggenheim/Polestar before the share price moves higher.

More than your average shell company, Colorado-based Gores Guggenheim (NASDAQ:GGPI) is bringing Swedish electric vehicle (EV) maker Polestar to Wall Street. GGPI stock has been directionless for a while, but is likely poised to make a strong move in the near future.

There's no denying that the competition among EV manufacturers is heating up. Hence, the skeptics might argue that Polestar is just one EV business among many.

What the naysayers are missing is Polestar's value proposition as a high-performance luxury EV maker. Perhaps they didn't see the commercial that Polestar aired during the Super Bowl, featuring a model of the stunning Polestar 2 EV.

Or, maybe they didn't get wind of the beautifully designed Polestar O2. With a combination of sustainability and technology — and a major purchase order that's grabbing the headlines — Polestar is clearly an EV-industry disruptor to watch.

What's Happening With GGPI Stock?

Admittedly, GGPI stock has been directionless lately. The stock has flopped around over the past six months, yet its seems magnetized to the $12 area.

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That's frustrating, but investors should be patient. Polestar's story is just beginning, and will have many more chapters.

As InvestorPlace contributor Mark R. Hake pointed out, Polestar CEO Thomas Ingenlath sees the company's valuation going "well above" $20 billion. Based on Hake's calculations, Polestar "could end up with a significantly higher valuation than this."

It's difficult to predict exactly what a $20 billion valuation for Polestar could do for GGPI stock. Could there be a 2x, 5x or even 10x share-price move in the cards? The sky is the limit, really.

Ultimately, what will bolster Polestar's value as a company is the automaker's relentless drive to innovate. For instance, Polestar recently released a Polestar 2 connectivity upgrade, a P2.0 software update that includes Android R for the vehicle's Android Automotive OS infotainment system.

Ingenlath emphasized that Polestar's updates allow the company's customers to "receive constant enhancements without making a trip to a workshop." Really, it's just another example of how Polestar remains in the pole position in advancing modern EV technology.

Accelerating EV Adoption

Even while Polestar's vehicle models are powerful, visually pleasing and tech-enhanced, it certainly wouldn't hurt the company to increase its exposure to the public.

Fortunately, a new purchase order will allow drivers to get a taste of what Polestar's EVs have to offer. In a strategic partnership intended to accelerate EV adoption, Hertz (NASDAQ:HTZ) has agreed to purchase as many as 65,000 vehicles over five years from Polestar.

Initially, Hertz will order Polestar 2 model vehicles. This makes sense, as the Polestar 2 appears to be the company's best-known model.

Hertz has had its share of problems, but it's still a famous vehicle-rental company with a vast market presence. This purchase order should provide exposure to EVs generally, and Polestar vehicles specifically, to a large number of drivers.

To be honest, experiencing the Polestar 2 might spoil some novice EV drivers. If they try other manufacturers' EVs later on, they may be disappointed.

But then, they might come back to Polestar if/when they're ready to purchase their first or next EV. At the very least, the purchase order from Hertz should provide Polestar with a revenue boost. Even beyond that, the collaboration could be the start of a long-standing, mutually beneficial business relationship.

What You Can Do Now

It's undoubtedly frustrating, waiting for GGPI stock to break out. Patience will be crucial as Polestar's still at the beginning of its journey as an EV-market disruptor.

The deal with Hertz will provide a shot in the arm, but it's not the only reason to invest in Gores Guggenheim/Polestar. As long as Polestar continues to upgrade its vehicles with tech and other enhancements, you're invited to test-drive a moderately sized investment in this fascinating EV manufacturer.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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