Early investors in electric-vehicle (EV) battery start-up QuantumScape (NYSE: QS) have had quite a ride -- and not the fun kind. The company went public via a merger with a special purpose acquisition company, or SPAC, in late 2020 and quickly zoomed to a valuation of around $54 billion. Investors were excited about the potential of a better EV battery and rushed to buy.
That didn't last, of course. QuantumScape's market cap is now around $3 billion. But despite the stock's swoon, the investment case for the company hasn't changed. Here's what QuantumScape does and why it might be a major player in EV batteries in a few years.
QuantumScape's solid-state batteries could make EV charging quicker and the cars lighter and safer. But the company still has challenges to overcome before its batteries go to market. Image source: Getty Images.
Source Fool.com