SIDU - Why GGPI Stock Is Down 25% in 2022 Ahead of Polestar SPAC Merger Vote
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- Gores Guggenheim (GGPI) stock is slipping ahead of a SPAC merger vote next week.
- New SEC regulations are also scaring investors.
- The company’s stock is also down today on EV sales updates.
Gores Guggenheim (NASDAQ:GGPI) stock is falling on Thursday as investors prepare for its special purpose acquisition company (SPAC) merger vote.
That SPAC merger vote is set to take place on June 22, which is next week. The company is reminding investors to vote in favor of the deal that has it combining with Swedish electric vehicle (EV) company Polestar.
Unfortunately for GGPI shareholders, the last several months have been rough for the stock with shares down 25.4% since the start of the year. It doesn’t look like things are getting any better, either.
First off we have the U.S. Securities and Exchange Commission (SEC) cracking down on SPAC mergers. That includes introducing new regulations that would require similar disclosures to that of an initial public offering (IPO).
Next is new sales estimates for EVs from Jefferies. Analysts at the firm dropped EV sales estimates to 8.7 million in 2022 and 11.5 million in 2023. The prior estimates were 9 million and 11.8 million, respectively.
News of that lower sales estimates for EVs has several stocks in the space slipping today. GGPI isn’t immune to that as it’s planning to merge with an EV company.
All of this has GGPI stock seeing heavy trading today. As of this writing, more than 5 million shares of the stock have changed hands. That’s above its daily average trading volume of roughly 3 million shares.
GGPI stock is down 8.9% as of Thursday afternoon.
Investors seeking out more stock market news are in luck!
We’ve got all the hottest stock news traders need to know about for Thursday! That includes what’s going on with Sidus Space (NASDAQ:SIDU) and SoFi (NASDAQ:SOFI) shares, as well as the latest inflation news. You can read up on these matters at the following links!
More Thursday Stock Market News
- Why Is Sidus Space (SIDU) Stock Up Another 50% Today?
- SOFI Stock Is Down 60% In 2022. SoFi Insiders Keep Buying.
- How Do Higher Interest Rates Affect Inflation?
On the date of publication, William White 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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