Will QuantumScape Stock Recover in 2023?
Shares of lithium battery technologist QuantumScape (NYSE: QS) have unsurprisingly continued to slide lower throughout 2022. With just a few weeks of December left to go, the stock is down 70% on the year, and 94% off the all-time high it touched in late 2020.
QuantumScape isn't alone. All sorts of unprofitable tech stocks have been hammered this year as the Federal Reserve unwinds a decade-plus of loose money policy in its urgent effort to fight inflation. The Fed has hiked its benchmark federal funds interest rate at the fastest pace ever, and a side effect of that has been that investors have deflated their valuations for previously richly priced companies such as QuantumScape. But could the electric vehicle (EV) battery company begin to recover some of that lost ground in 2023?
QuantumScape went public via a reverse merger with a SPAC at the tail end of 2020. That was still relatively early in the pandemic, and though the world was in a bad place, the Fed had lowered the federal funds rate to 0%, and the government was liberally distributing stimulus cash to help businesses, households, and the U.S. economy stay afloat. With so many people largely stuck at home, a lot of new retail investors were born -- people ready to invest in the latest-and-greatest tech stocks with promising futures. QuantumScape was one of them, and its freshly minted public stock took off.
Source Fool.com
