QuantumScape (NYSE:QS) stock is falling on Thursday following a report claiming that the company is nothing more than a “pump and dump” scam.
Here’s everything investors need to know from the report from Scorpion Capital.
- The report starts off with a strong headline calling it a scam created by Silicon Valley celebrities that makes Theranos look amateur.
- It also cites former employees that don’t believe the company is able to meet its promises.
- That includes offering solid-state batteries for electric vehicles that could charge to 80% in just 15 minutes.
- One even said that it was “a super-difficult problem like, basically, Nobel-Prize-winning work needs to be done to make solid-state batteries real.”
- That same employee also said that QuantumScape hasn’t solved the problem with solid-state batteries and won’t have a product in a car in the next 10 years.
- This is in direct contrast to what CEO Jagdeep Singh has said in interviews.
- Other former employees are saying the same thing and some point to Singh as the main force behind the alleged misinformation.
- That includes claims that Singh doesn’t allow dissenting opinions and is tightly controlling what the media gets to see about the company.
- One said that the CEO is making bold claims in hopes that the data will catch up in time, but that it’s taking too long.
- Another former employee said the following about Singh.
- “I’ve worked for many CEO’s, and I’m more in the camp of being honest with your investors. That’s not the Quantumscape way.”
QS stock was down 9.9% as of Thursday morning and is down 26.3% since the start of the year.
While QuantumScape might not be the EV play that some think it is, there are plenty of other options out there.
While batteries have been a big focus of the EV push, investors can also just plainly look to makers of the vehicles themselves. That includes Nio (NYSE:NIO), Fisker (NYSE:FSR), and Hyliion (NYSE:HYLN). Potential investors can catch up on the latest news from these comapnies below.
More EV Stocks News
- Nio Stock Is Bound for a Strong Comeback After Finally Finding Its Groove
- Fisker Is an High-Risk, High-Reward EV Play
- As the EV Field Gets More Crowded, Hyliion May Start to Stand Out
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.