QS Stock Price Falls 14.08%: Why It Happened (Update)

By Amit Chowdhry ● January 3, 2021
  • The stock price of Quantumscape Corp (NYSE: QS) fell 14.08% as it went from a previous close of $98.29 to $84.45. This is why it happened.

CORRECTION: An earlier version of this article mentioned a secondary offering, but that was not the case as there are no new shares in connection with the Resale S-1. This article has been corrected. Please see this note to investors regarding the recent registration statement on the Form S-1. And although QuantumScape had registered 306 million shares for resale – with the exception of 50 million shares purchased by PIPE investors – shares remain subject to lock-up restrictions.

The stock price of Quantumscape Corp (NYSE: QS) — a company that produces solid-state lithium-ion batteries for electric cars — fell 14.08% as it went from a previous close of $98.29 to $84.45. One of the biggest triggers likely has to do with some changes in the S-1.

QuantumScape is focused on solid-state lithium-metal batteries, which has several advantages over lithium-ion batteries like lower cost and better energy storage. And the lithium metal solid-state batteries can be charged to 80% full in 15 minutes without compromising on battery life or safety.

Even though the technology will not be ready by 2025, QuantumScape has been forecasting sales. In 2025, QuantumScape is predicting that revenue will hit $39 million reported Fortune. Then the company expects to hit $275 million in 2026 and $3.2 billion in 2027. Over the last month, the stock price of QuantumScape increased by over 119%.

Some of the reasons why investors have been liking QuantumScape thus far is due to its favorable governance and business model. Over the last several months, a number of electric vehicle companies have also seen their stock prices surge including Tesla and Nio – which has been driving investor euphoria as well. QuantumScape appears to be a part of the electric vehicle investor frenzy.

Disclosure: I have a small QS position in my stock portfolio