Why QuantumScape Stock Plunged 40% This Week
Betting on QuantumScape (NYSE: QS) stock isn't for the faint of heart. After clocking massive 41% gains last week, shares of the electric vehicle (EV) battery maker have made a complete U-turn in the last few days. They were trading 40% lower this week through 10:40 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.
If QuantumScape took the markets by surprise in late July with its progress toward the development and commercialization of its solid-state lithium-metal batteries, its latest announcement has hit a nerve in investors.
QuantumScape ended its second quarter with roughly $900 million in liquidity, including cash, cash equivalents, and marketable securities. Although the company said its cash runway should last through the second half of 2025, it requires additional funds to develop its products and commercialize them. So far, QuantumScape has funded its capital expenditures and day-to-day operations through equity, and it is tapping into a stock sale yet again.
Source Fool.com
