Why QuantumScape Stock Lost 25% in April
Even with the S&P 500 down nearly 9% in April, some sectors stood out as having a notably worse month. Technology and growth stocks were particularly hard hit. Solid-state battery technology company QuantumScape (NYSE: QS) is among those, and is still just speculative, without a commercial product. That led to shares outpacing the broader market declines, plunging 25.3% for the month of April, according to data provided by S&P Global Market Intelligence.
After QuantumScape began trading publicly in November 2020, investors were so excited about the potential of its solid-state battery technology for the electric vehicle (EV) industry that shares soared more than 400%. That valued the company with a market cap of about $45 billion.
This was for a company still in research mode that didn't even have a proven technology for its product. Investors knew, and still should know, that QuantumScape doesn't plan to begin production of its battery cells until 2024. So when the overall market is rotating away from growth and technology, QuantumScape stock is a prime candidate to get hit. But for those who knew this would be a very long-term story, there has been some recent good news.
Source Fool.com
