A few weeks back, I made the case why a “wait and see” approach may work best with Gores Guggenheim (NASDAQ:GGPI). However, taking a second look, I’m changing my view. That cautious strategy may not be the best move with GGPI stock after all — especially as more comes out about the special purpose acquisition company (SPAC) and its plans to merge with Sweden-based electric vehicle (EV) maker Polestar.

While not exactly under the radar right now, this name hasn’t received the same hype as players like Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN). Soon, though, it could join the ranks of these upstarts — Polestar could be seen as another contender grabbing market share from the leading name in the industry, Tesla (NASDAQ:TSLA). Right now, it’s looking less likely that GGPI will drop below $10 per share (its SPAC offering price) in the near-term.

This is not to say that the opportunity to get in at single-digit prices is off the table. Yet, if you’re determined to buy GGPI stock, consider now the time to make your move — whether you are approaching it as a short-term trade or a long-term investment.

GGPI Stock and Polestar’s ‘Tesla Killer’ Potential

Between Lucid, Rivian and other promising EV plays like Fisker (NYSE:FSR), it may seem like the market is too crowded for another EV contender. But based on the latest headlines about Polestar and the specs for its line of luxury electric vehicles? It too may have the potential to become a “Tesla killer.”

For instance, according to Barron’s, the Polestar 2 crossover offers a standard range (270 miles) that beats the standard range of the Tesla Model Y. Additionally, there has been more talk about the company’s Polestar 3 SUV model, which will be its first vehicle produced in the United States.

Add in the backing and expertise of both Volvo (OTCMKTS:VLVLY) and China-based corporate parent Geely (OTCMKTS:GELYF) and there’s a lot to suggest Polestar will live up to the high expectations it’s setting for itself. This includes it hitting deliveries of 290,000 by 2025.

Sure, this has yet to result in GGPI stock making the types of “to the moon” moves that LCID made back before its deSPACing. However, this level of promise and potential may be sufficient to keep shares from taking a dive into the single digits.

Even as a Trade, Patience Is Key

Some investors may be interested in Gores Guggenheim as a long-term bet on Polestar. That is, they intend to buy it now and hold it for several years. Then at that point, when it’s possibly a profitable EV maker? They can exit at a large profit. Investors with this mindset may be fine holding it now. But for the chance to exit at five times or perhaps even 10 times their entry point down the road? They’ll have little issue putting up with sideways price action in the interim.

Others, though, are likely looking at GGPI stock with a much shorter time horizon. Missing out on Lucid’s rollercoaster ride, they may want to get into the next EV play to become a meme. There’s nothing wrong with having this “take the money and run” mindset. What’s more, buying at $10 to $15 per share and flipping for $25 to $30 could play out. However, for that trading idea to work, patience may be key.

Why? At the very least, a turbocharged run for this EV SPAC may take many months. “In the first half of 2022” is all we know so far about when the deal will close. That could mean March, but it could also mean late June. And on top of that, there could be delays.

To top things off, it’s not set in stone that GGPI stock stays above $10 per share. Sure, with the markets calming down again, a big drop in EV stocks may look less likely. But my previous thesis — that EV stocks could tumble in the months ahead — could also play out. After the mad dash back into them during October and November, EV stocks could see a continued slide until the next positive wave happens.

The Bottom Line: Buy Now if You’re Bullish

There’s still a chance that Gores Guggenheim could drop to a more favorable entry point in the months ahead. But with more attention being paid to its potential as a “Tesla killer,” you may not get a chance to grab it in a situation where it’s temporarily oversold.

Instead, if you’re bullish that GGPI stock could become another Lucid, you may want to buy it now. There’s a chance it could experience further, high volatility. But it’s now looking increasingly likely to hang tight between $10 and $12 per share before having its breakout moment after the merger closes.

On the date of publication, Thomas Niel did not hold (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.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.