Why QuantumScape Stock Is Up and Down Today
On Monday, the markets are trying to digest the fallout from the collapse of Silicon Valley Bank, a subsidiary of SVB Financial Group. Battery maker QuantumScape (NYSE: QS) is tied to the story in two ways, one potentially bullish and the other bearish.
Investors aren't sure what to make of the situation right now, sending shares of QuantumScape down as much as 5.7% in early-morning trading before reversing course and sending the shares into the green by 11 a.m. ET.
QuantumScape is working to commercialize a solid-state battery that would revolutionize the electric vehicle industry. If the chemistry works as the company hopes, future vehicles could store a lot more energy than current models and recharge much more quickly. But the technology is unproven at scale and QuantumScape is a pre-revenue company, making it a high-risk investment.
Source Fool.com
