Why QuantumScape Stock Plunged 29.1% in May
Shares of QuantumScape (NYSE: QS), a developer of solid-state batteries for electric vehicles (EVs), plunged 29.1% in May, according to data from S&P Global Market Intelligence. The stock had traded as high as $132 per share back in December, but ran into problems in 2021 as investors soured on speculative stocks with minimal or no revenue. It took a vicious hit back in April, when activist short-seller Scorpion Capital called QuantumScape a "pump and dump" scam.
In May, QuantumScape's stock fell further. Several analysts lowered their price targets following the company's first-quarter earnings report, and later in the month, Ford Motor Company (NYSE: F) announced it would work on its own solid-state battery with a QuantumScape rival.
Image source: Getty Images.
Source Fool.com
