QuantumScape Inc. (QS) stock plunges in the current market trading. Why is it so?

QuantumScape Inc. (QS) stock declines by 12.61% in the current market trading. As of now there is no recent news available regarding this downfall in QS stock price. QuantumScape is a pioneer in the manufacture of next-generation solid-state lithium-metal batteries for electric car applications. The goal of the organization is to revolutionize energy storage in order to create a more prosperous future.

Past Developments

On April 1 QS announced that it has achieved the technical breakthrough that was a requirement for Volkswagen Group of America Investments, LLC (“VW”) to spend an additional $100 million in QuantumScape. Volkswagen had to efficiently test the new version of QuantumScape’s solid-state lithium-metal cells in their German laboratories to reach this milestone. This will be the second and final closure under VW and QuantumScape’s stock purchasing arrangement, which called for a gross investment of $200 million on May 14, 2020. Following the termination of the waiting time or any approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the transaction would be closed.

Official Remarks,

Frank Blome, head of the Volkswagen Group’s Center of Excellence Battery Cell said that they are happy to say that the QuantumScape cells achieved the technological goals that they had previously decided upon in their German laboratories. QuantumScape is pleased to have reached this landmark, and QS now look forward to acquiring and evaluating future generations of cells in order to bring solid-state technology into series development.

Jagdeep Singh, co-founder and CEO of QuantumScape said, they’re ecstatic to have reached this technical breakthrough with Volkswagen, also they’re hoping to work together to bring solid-state lithium-metal battery technology into mass production.

Despite this recent positive development in QuantumScape, the reason of decline in QS stock is still unknown.