- Polestar stock has missed out on the recent meme stock rally.
- PSNY stock was once Gores Guggenheim (GGPI) and had a decent retail following.
- Polestar announces plans for its roadster to go into production.
Polestar (PSNY) stock has not participated in the recent meme stock melt-up as news flow in the name has been quiet. Retail traders did have interest in the old SPAC stock GGPI, but since merging into Polestar interest appears to have dried up. This is most likely to do with a lack of news flow from Polestar as retail traders have looked elsewhere for momentum plays.
Polestar stock news
Despite the apparent lack of news flow, PSNY stock has caught the attention of notable Wall Street analysts this month who have echoed what we have pointed out for some time – namely that Polestar has distinct advantages over other EV companies due to its partnerships with Geely and Volvo. This means that Polestar can launch models quickly and efficiently as it piggybacks off the manufacturing and supply lines of its bigger corporate partners. Polestar uses or will use Volvo or Geely plants in China and South Carolina for manufacturing. It will also reportedly use Volvo’s service network. This means it does not need massive capital to get production up and running. At the beginning of August, Citi put a $13 price target on Polestar, while Deutsche Bank put a $10 price target on the stock.
Polestar is due to launch the Polestar 3 this October. This will be a fully electric SUV and could be the next catalyst for the share price. The company also announced it is to bring into production its concept roadster, which will be called the Polestar 6. It is truly a stunning-looking machine. This is the concept below that the new model will be based on, we believe.
Polestar (PSNY) stock forecast
`With such limited history, technical analysis is not perfect in this case, but we can see how $8.61 acted as support and so is now the first resistance. This will remain a momentum play for some time, however, as it is in the early stages of its development. News will be key, so keep an eye out for the launch of the Polestar 3 in October. That will see some interest in PSNY stock. Given it is a debut rather than cold hard sales figures, the momentum play will likely be short-lived. That is the strategy here: it is either a very long-term play on the company generating EV market share as Citi and Deutsche have outlined or it is a shorter momentum play based on news items.
PSNY stock daily