Although there have been a few notable stock market debuts in the electric vehicle field recently, battery start-up QuantumScape’s first few weeks of trading were exceptional even by EV stock standards.
QuantumScape, created in 2010, went public through a combination with a SPAC. Its shares skyrocketed 49 percent on its first day of trading in November 2020, reaching a peak of $131.67 on December 22 – a gain of more than 400 percent in less than a month.
Investors Holding Their Breath
Investors were enthralled by QuantumScape’s solid-state battery technology, which eliminates the flammable liquid or gel electrolyte found in today’s lithium-ion batteries. Furthermore, the fact that Volkswagen, the world’s largest automaker, was a key investor, as well as the fact that Bill Gates had invested, didn’t hurt.
However, the fervour that enveloped the company in late 2020 appears to have died off, with the once-hot stock losing nearly 92 percent of its value since its all-time high.
QuantumScape believes its batteries are still on schedule to go into production in a few years, despite the grandiose statements it made in 2020. However, the corporation faces a lengthy and cash-intensive period.
Investors may have moved on, but the car industry is still keeping an eye on the situation: QuantumScape has announced that three other automakers have agreed to test the company’s batteries, in addition to Volkswagen. Those automakers have remained anonymous thus far.
A Little, Bendable Ceramic Piece
It’s easy to understand why automakers are so excited about solid-state battery technology. Lithium-ion batteries are largely dependable today, but their size, weight, and recharging times make them unsuitable for electric cars. While EV fires are uncommon, they are often severe and difficult to extinguish, thanks to lithium-ion batteries’ ability to burn for hours.
