Pre-merger special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ:GGPI) is having a rough time. GGPI stock, which is set to merge with Swedish electric vehicle (EV) maker Polestar, is in trouble due to Russia's invasion of Ukraine.

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Sanctions against Russia are contributing to rising oil prices, and fears of conflict escalation are also creating pressure. The broader markets are in the red, so GGPI stock is not alone in this mess. However, SPACs are generally considered risky, so investors are passing over these picks in favor of safer choices, like dividend and retirement stocks.

Plus, there are a couple of other factors weighing down the stock. The Federal Reserve has raised interest rates, and more increases are expected in the future.

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Polestar, a joint venture between Volvo and Chinese automaker Geely (OTCMKTS:GELYF), recently released a video of its upcoming O2 concept car and early photos of its hatchback model. Last year, it sold 29,000 vehicles. With these factors in its favor, now is not the time to abandon ship and sell GGPI stock.

Polestar Is Different From Other EV Startups

Gores Guggenheim's reverse merger with Polestar is due for completion in the first half of this year. Usually, the pre-merger anticipation leads to sharp increases in the stock price. However, shares have been under pressure due to recent macroeconomic events.

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But you have to judge each company on its merits. On that front, Polestar has the goods to deliver.

The luxury EV maker sells cars made in China. The company's two-door premium plug-in hybrid sports car, Polestar 1, retails for $155,000. However, its Polestar 2 model, available for $47,200, is much more affordable and competes directly with the Tesla Model 3.

The car has been overwhelmingly popular worldwide, with 4,000 reservations in South Korea alone made in one week. Last year, the company sold 29,000 vehicles, representing a year-over-year (YOY) jump of 185%.

Polestar has an exciting future ahead. The company is already paving the road to success with its Polestar 3, which will release next year, followed by two new models in 2024. By 2025, it hopes to sell 290,000 vehicles annually.

The Problem With the 'Next Tesla' Argument

Tesla's (NASDAQ:TSLA) success is largely attributed to its innovative technology and great business model. It doesn't sell cars directly to consumers, but instead sells them through franchised dealerships. Tesla can control the entire production process and keep its profit margins high by selling high-end cars at a lower price than competitors.