Shares of QuantumScape (NYSE: QS) fell 23.8% in September, according to data from S&P Global Market Intelligence. The solid-state battery start-up didn't have any business-related news in the month, but with rising interest rates across the globe, investors are getting less optimistic about unprofitable and early-stage stocks. As of Oct. 4, the stock is down over 50% year to date (YTD). 

QuantumScape is an electric battery start-up that went public through a special purpose acquisition company (SPAC) back in 2020. The company is trying to create a solid-state battery for electric vehicles (EVs), which would help improve range and efficiency over existing battery types. The EV market is set to become worth hundreds of billions of dollars this decade, a lot of which will be spent on batteries, so investors were extremely optimistic about QuantumScape when it went public. At one point, shares were up over 1,000% in less than a year.

The problem is, QuantumScape has no commercially viable product and has told investors it won't have one for many years. With zero revenue and tons of operating expenses (almost $100 million just last quarter), the company will likely need to raise new funds from the capital markets multiple times over the next few years.

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Source Fool.com