Will QuantumScape Stock Take Flight in 2024?
Investors fell in love with electric vehicle (EV) and renewable energy stocks in 2020 and 2021. Dozens of start-ups in these fields went public through reverse mergers with special purpose acquisition companies (SPACs) a few years back. Most of them have now failed or are down significantly from their IPO prices, going through a classic boom-and-bust cycle. Now, they are in the bust.
QuantumScape (NYSE: QS) was a quintessential bubble stock from 2021. At one point, the battery technology start-up had a market cap of $50 billion. It has never generated any revenue. Now, shares are down 94% from their peak, and its market cap sits at a relatively small $4 billion as investors have lost their patience for money-losing EV and renewable energy SPAC stocks.
But could QuantumScape be an opportunity for contrarian investors today? The company is making a lot of progress with its innovative solid-state batteries and could reach commercial production soon.
Source Fool.com
