Why QuantumScape Stock Plunged in May

Developing new, solid-state battery technology for the electric-vehicle industry isn't easy, but QuantumScape (NYSE: QS) continues to make progress. The company updated investors with its first-quarter results in the last week of April. While it continued to show steady progress, QuantumScape stock extended its April slide throughout May as well. QuantumScape shares lost another 14.4% during the month, according to data from S&P Global Market Intelligence.

QuantumScape is still a $5 billion company, even after losing about 47% in value year to date. With the Nasdaq Composite at bear market levels, it's not surprising to see a pre-revenue technology company down twice as much this year as the tech-heavy index. Much of its value is based solely on potential and relative progress, and investors aren't willing to hold the riskiest investments through the down cycle. QuantumScape shares have been falling as a result. But that can provide a more attractive entry point for those who still want to add to the speculative portion of a portfolio. 

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Source Fool.com