Here's Why QuantumScape Shares Dropped Today
QuantumScape (NYSE: QS) shares have soared 75% so far in 2023 as the company makes progress in commercializing its solid-state battery technology for electric vehicles (EVs). But the shares dropped today when investors took notice of a new threat to the company's future. As of noon ET, QuantumScape stock was down 4.6% on the day.
Today's drop comes on the heels of QuantumScape's fourth-quarter earnings report it released last week, when the stock also plunged. But the most recent decline may be from other news in the sector from the largest EV battery maker. China-based Contemporary Amperex Technology -- better known as CATL -- unveiled a new pricing strategy that could have significant impacts in the sector, Barron's reported this morning.
QuantumScape is still a prerevenue company, and its technology has yet to be proven at the commercial level. But even if that comes to pass, CATL's pricing strategy might significantly impact potential future profits for QuantumScape and other EV battery makers.
Source Fool.com
