QuantumScape Corp (QS)

QuantumScape Corp (QS) stock dropped by 5.43% due to growing concerns about its partnership with Volkswagen and the commercialization of its solid-state battery technology. Here are the key details:

• Volkswagen's Impatience and Exploring Alternatives: Volkswagen has been QuantumScape's partner since 2012, investing heavily in the company. However, QuantumScape has faced delays in commercializing its solid-state battery technology. Reports indicate that Volkswagen is now looking at other options and is in discussions with France's Blue Solutions.
• Blue Solutions as an Alternative: Blue Solutions is already producing solid-state batteries for various applications and has contracts with companies like BMW. Volkswagen may consider a partnership with Blue Solutions, diversifying its battery supply.
• Challenges for QuantumScape: QuantumScape's delays have prompted Volkswagen to seek alternatives for its battery needs. This adds uncertainty to the future of QuantumScape's partnership with Volkswagen and its growth prospects, given increasing competition in the solid-state battery market.
• Key Implications: Investors are closely watching these developments, recognizing that Volkswagen's decisions have significant implications for QuantumScape's position in the EV battery market.

QuantumScape Corp (QS) stock dropped by 6.45% after experiencing a remarkable surge, with its stock soaring by as much as 50% in the previous session. However, the euphoria was short-lived as QuantumScape's shares plummeted by 6.45% today. The electric vehicle (EV) battery technology company had seen its stock close the previous session up by 43%.

• Reason Behind Yesterday's Surge: The substantial surge in QuantumScape's stock yesterday was attributed to solid reasons. Investors were particularly encouraged by the company's promising battery technology, which has the potential to revolutionize the EV industry. Unlike traditional lithium-ion batteries that use graphite anodes, QuantumScape's technology replaces graphite with anode-free lithium metal. This innovation promises the highest energy density for EV batteries, addressing concerns related to vehicle range and range anxiety.
• Volkswagen's Positive Testing Results: Furthermore, a unit of the Volkswagen Group, which has been testing QuantumScape's battery cells, reported impressive results. They achieved more than 1,000 charging cycles while maintaining over 95% of charging capacity. This indicates that a typical EV equipped with QuantumScape's solid-state batteries could travel for over 300,000 miles without the need for battery replacement. Additionally, these batteries charge faster and have a lower fire risk.
• Work Ahead for Commercialization: Despite these promising early-stage laboratory tests, there is still substantial work required for the commercialization of this technology. QuantumScape does not anticipate being ready to bring its batteries to the market for at least another two years. This timeline likely contributed to today's stock sell-off, with some investors taking profits after yesterday's significant jump.

Quantumscape Corporation Stock (QS) dropped by 6.95% from $5.61 to $5.22 in the trading on Thursday October 26, 2023. The reason why QS stock down today include:

• Loss in revenue: Quantumscape delivered results in Q3 2023 today, and actually delivered a loss that was smaller than the market anticipated. It seemed to weigh on the stock as did the broader market sell-off, causing QS stock down today. The company posted a loss per share of $0.23 in the quarter, while the average analyst estimate had called for a per-share loss of $0.39.
• Speculative outlook: Quantumscape continues to post substantial losses, and it's unclear when the battery specialist will eventually see strong demand for its products and be able to manage a manufacturing ramp-up and shift into profitability. At its current rate of cash burn, the battery specialist should be able to continue funding its operations into 2026, but its sales trajectory remains highly uncertain.
• Bearish on economic trends: Investors are becoming more cautious about growth-dependent stocks today, and the battery specialist is participating in the broader valuation pullback trend.

Quantumscape Corporation Stock (QS) dropped by 5.56% from $6.48 to $6.12 in the trading on Tuesday October 3, 2023. The reasons why stock QS is down today includes:

• No revenue: Quantumscape is in an tough position, burning through $384 million in cash over the past year. That's not sustainable, especially without any revenue.
• Effect from EVs stock: Battery maker Quantumscape is trying to ramp up sales to electric vehicle manufacturers, who may now be seeing a demand crunch. That'll make it harder to scale, so it's understandable that QS stock is down today.

QuantumScape (QS) shares rose 50% in 3 months. Now planning to raise $300 million through additional share sales, causing a 20.70% drop. Long-term investors focus on its progress in solid-state battery tech. Some took profits after recent surge.

https://www.fool.com/investing/2023/08/03/why-quantumscape-shares-plunged-today/

QS's stock fell 7.49% after Wolfe Research downgraded the solid state lithium metal battery developer to an Underperform rating after having it set Peer Perform previously.

https://www.fool.com/investing/2023/06/08/why-shares-of-quantumscape-are-tumbling-today/