- The stock price of QuantumScape Corporation (NYSE: QS) has surged 57.45% in its public debut day as it went from $23.50 at the opening price to a closing of $37 per share. Here are more details.
The stock price of electric vehicle battery developer company QuantumScape Corporation (NYSE: QS) has surged 57.45% on the opening day as it went from $23.50 at the opening price to a closing of $37. QuantumScape went public on the New York Stock Exchange on Friday, November 27 through a special purpose acquisition company (SPAC) merger.
The merger was done with Kensington Capital Acquisition Corp. (NYSE: KCAC). Kensington Capital Acquisition was founded by Justin Mirro. Mirro had left a career in investment banking to dedicate himself to Kensington Capital in 2015, which invests in companies that benefit from structuring, financing, operating, etc. Mirro had spent nearly 20 years as an automotive investment banker for various global banks and advised on over $70 billion of M&A, debt, equity, and restructuring deals for automotive suppliers, dealerships, etc.
QuantumScape has a goal of commercializing solid-state lithium metal batteries. These types of batteries are expected to offer a better range and faster charger time. Plus their technologies are expected to be more cost-effective. And QuantumScape has been backed by Microsoft co-founder Bill Gates and Volkswagen. Tesla co-founder and former chief technical officer JB Straubel is on the board of QuantumScape.
It’s worth mentioning that the mass production of the batteries will take several years. Volkswagen plans to install them into their vehicles by 2025.
QuantumScape was launched 10 years ago by Jagdeep Singh and Tim Holme. Singh had previously founded a company called Infinera — which went public back in 1999. And Holme did his Ph.D. in Mechanical Engineering at Stanford and worked as a research associate before launching the company.
“Whoever wins the battery battle, so to speak, is going to be looking at, in our opinion, a multi hundred billion dollar company,” said Singh in an interview with Yahoo! “We think that solid state technology is the technology best poised to win this battle over the long run.”
QuantumScape’s solid-state lithium battery technology is different from conventional batteries — based on liquid or gel electrolytes. QuantumScape’s batteries replace that liquid with a solid material called solid-state electrolyte — which offers higher energy density for providing more range and faster charger times. Plus it is safer since the material is non-flammable.