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Why QuantumScape Shares Plunged Today

TheMotleyFool

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Why QuantumScape Shares Plunged Today: https://g.foolcdn.com/editorial/images/742584/ev-electric-vehicle-charging-charge-port.jpg

Shares of QuantumScape (NYSE: QS) have soared more than 50% in the past three months, and the company is looking to take advantage of that move. But after it announced plans to raise additional capital, investors are selling the stock today. As of 10:25 a.m. ET on Thursday, shares were lower by 16.3%.

QuantumScape plans to sell $300 million in additional shares, and investors are reacting in a typical fashion. The added share count will dilute existing shareholders, and the shares will likely be offered at a below-market price.

The company hasn't yet announced those details. But today's reaction is from short-term traders, and longer-term investors shouldn't be surprised that the company is looking to raise extra capital.

Source Fool.com

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