Why QuantumScape Stock Exploded This Week
Shares of QuantumScape (NYSE: QS) plunged to their 52-week lows in mid-June. The stock of the electric vehicle (EV) battery maker has staged a remarkable recovery since, regaining almost 50% in value. This week turned out to be particularly strong, with the stock up 17.2% at its highest point as of this writing, according to data provided by S&P Global Market Intelligence.
Ironically, QuantumScape's latest announcement isn't really encouraging, but investors are clearly focused elsewhere and see promise in the stock.
After releasing its second-quarter numbers on July 29, QuantumScape also filed for a $1 billion mixed-securities shelf offering. Put simply, the company can sell a variety of securities, including common stock, over time to raise that amount of funds. Since any issue of common stock will dilute existing shareholders, that's the last thing investors want to see from a start-up that's still years away from commercial production.
Source Fool.com
