Here's Why QuantumScape Shares Soared This Morning
Solid-state battery maker QuantumScape (NYSE: QS) has hit a critical juncture in its bid to introduce a new technology to the electric vehicle (EV) sector. Investors initially cheered the milestone announcement, sending shares higher by about 15% Tuesday morning. However, that bounce didn't hold, and the stock was down by 0.8% as of 2:28 p.m. ET.
QuantumScape announced today it has begun shipping prototypes of its solid-state battery cells to potential automotive customers. The company has spent the past two years proving its solid-state battery concept and working toward a commercially viable unit. The company built its first multilayer cell in early 2021 and successfully produced a 10-layer cell later that year. The 24-layer cell it just began shipping is what is required to produce a commercial version of the product. These will now begin testing by automotive manufacturers.
QuantumScape called today's announcement an important part of the commercialization process and said it was its "key public milestone for the year." So investors may be wondering why the stock gave up all its gains today, especially after the stock has already dropped more than 70% year to date.
Source Fool.com
