Why QuantumScape Stock Plunged to All-Time Lows Today
QuantumScape (NYSE: QS) stock plunged this morning, dropping 10.3% around 9:52 a.m. ET to its all-time lows. The electric vehicle (EV) battery stock received yet another analyst downgrade today. The analyst's price target points at about 29% downside from the stock's closing price Tuesday, but it should pinch investors hard given that QuantumScape stock has already lost almost 70% of its value in 2022.
Goldman Sachs analyst Mark Delaney downgraded QuantumScape stock's rating from neutral to sell and slashed its price target to $5 a share from $8 per share.
Delaney foresees disappointment for investors in QuantumScape who are focused on the company's earnings and free cash flows. The analyst expects QuantumScape to continue generating negative earnings and cash flows for several years now given its long "time to market," or the amount of time the company requires to bring its solid-state battery technology to the market.
Source Fool.com
