This Stock Is Down 77%: Here's Why I'm Still Holding (and Might Buy More)
Electric vehicles (EVs) are changing the auto industry. Costs have come down, consumers are interested and buying, and every automaker from startup to legacy giant is putting serious money behind their EV ambitions. But just as with any mass-market product adoption, there remain major challenges. EVs are still expensive, weigh a lot more than a comparable oil-fueled automobile, and suffer from limited range and longer refueling.
In other words, there's still a long way to go before EVs can truly compete, apples to apples, with legacy cars and pickups.
Therein lies the bull thesis for QuantumScape (NYSE: QS). Its advanced, solid-state batteries, can help address many of the problems with current technology. Lighter weight, faster charging, longer range. The problem? It's likely those batteries are still at least a year or two from going commercial, and multiple years from being ready for mass production. As a result, shares have fallen 94% from the peak; the story sold a lot of stock, but investors are never patient with story stocks that don't quickly deliver the goods.
Source Fool.com
