Maybe you’ve noticed the trend already, but electric vehicles have been a hot topic for a while. QuantumScape has decided to join the hype and create its own solid-state lithium-ion batteries for electric vehicles. This American-based corporation started in 2010 with its creators, Jagdeep Singh and Professor Fritz Prinz of Stanford University.
Recently, the company decided to go public, and its share prices were a topic of debate. In this rideshare blog post, we will learn more about the company, its technology, and discover more about the fluctuations in its stock price.
What Is QuantumScape and What’s All That Buzz About?
Only two years after the company was founded, QuantumScape started working with Volkswagen, a renowned German car manufacturer. This collaboration was crowned when Volkswagen decided to invest $100 million into the company.
Expectedly, the German automakers became QuantumScape’s biggest shareholders. Bill Gates is another investor in QuantumScape who invested in them before the company went public recently.
Some other investors include:
Continental
Kleiner Perkins
Prelude Ventures
Capricorn Investment Group
SAIC motor
Breakthrough Energy Ventures
It offers proprietary battery technology that promises to revolutionize the modern electric vehicle industry.
But, what’s so special about their batteries that even Bill Gates decided to invest? Let’s find out.
What Is a Solid-State Lithium-Ion Battery?
When QuantumScape announced this battery, the public was excited because this innovation had the power to revolutionize the electric vehicle industry. However, many found these claims suspect, asking for proof to back them up.
You see, currently, electric vehicles are way behind gas-powered vehicles in terms of distance traveling. A large number of modern electric vehicles can only ride up to 300 miles. And, charging the battery takes at least an hour.
The only logical solution to this problem was to create the so-called ‘’solid-state’’ batteries. Instead of using the regular liquid electrolytes, solid-state batteries use solid electrolytes.
However, up until now, no one has been able to produce such technology.
Well, last summer, QuantumScape’s CEO has revealed the company’s test results. The report noted that QuantumScape’s battery overcame all challenges that were a problem with other solid-battery attempts.
Astoundingly, the company’s batteries can charge up to 80% in only 15 minutes, which is impressive - especially compared to current EV battery models.
The company claims that the battery can retain more than 80% of its initial charging power after the first 800 charging cycles. If you were worried about safety, don’t be. The battery is supposedly non-combustible.
When QuantumScape Went Public
Last September, QuantumScape announced that they wanted to go public. They wanted to achieve their goal by joining forces with the Kensington Capital Acquisition Corp in a reverse merger.
They went into the acquisition valued at $3.3 billion, which was a significant step towards offering their shares to the public.
QuantumScape has had a total of $510.8 million in funding up-to-date, raising the last round in June 2020.
In the first half of the day after officially going public in the New York Stock Exchange, its stock increased by 55%. Many were impressed to see this, which is why they kept a close eye on these stocks.
On November 27th, the shares were initially priced at $23.50. On the same day, the value increased to $36.49. The price increase didn’t stop there, though. In January 4th, one stock share was worth $49.96.
What’s Happening at the Moment?
However, on January 4th, something unexpected happened. The stock dropped by 41% after the public heard of the news about the company.
QuantumScape filed an S-1 form with the SEC. This form has the power to free up shares and warrants held by private placement investors. To make matters worse, an outlet named ‘’Seeking Alpha’’ published a story accusing QuantumSpace of offering unproven technology.
Then on Tuesday, the stocks rose by 19.1%, ending at the value of $59.50 per share.
The last information regarding its stock value was from January 12 when the shares dropped by 9%. While QuantumScape has managed to recover from the scary 41% drop, we’re yet to see what happens. The technology sounds incredible, and we would love to see it used in some of the rideshare options on our website in the future.
The Lawsuit - What Now?
In the section above, we’ve mentioned an article published by Seeking Alpha. On January 11th, Yahoo News published a story about a lawsuit against QuantumScape because of the claims in the article.
These lawsuits have been filed in North California not only against the company itself, but also its executives.
They go as follows:
Marliat v. QuantumScape Corp., et al.,No. 3:21-cv-00058 (N.D. Cal.)
Gowda v. QuantumScape Corp., et al., No. 3:21:cv-00070 (N.D. Cal.)
In the lawsuit, the plaintiffs allege that QuantumScape has misled its investors in regard to the purported success of its solid-state battery, as well as its ability to scale its technology.
That’s just recent news, so we’re yet to see how this lawsuit impacts the company’s stock value. Given the recent fluctuation, one must wonder whether they’ll plummet or remain stable.
Bear in mind that QuantumScape has yet to respond to this lawsuit, so let’s not jump the gun. This period has been stressful for them, so the next quarter will be critical for their operations.
As always, make sure to read up on our rideshare blog. We post all the latest news in the electric vehicle community. We’ll update you on the QuantumScape situation - we’re very interested in seeing what happens next.
