Why QuantumScape Dropped After a Monster Day Yesterday
QuantumScape (NYSE: QS) shares are sinking today. The stock of the electric vehicle (EV) battery technology company was down by 9.2% as of 11 a.m. ET. But that comes after shares rocketed as much as 50% higher yesterday before closing the session up 43%.
There was good reason for the stock's surge yesterday. So investors should wonder whether today's drop is providing a compelling opportunity.
QuantumScape's technology could have a major impact on the EV industry. Traditional lithium-ion batteries used for EVs use graphite anodes. That technology has limitations on vehicle range due to a low energy density. That also results in batteries losing charging capacity over time. QuantumScape has worked to replace the graphite with anode-free lithium metal. That would provide the highest energy density for EV batteries and go a long way toward addressing consumer hesitancy related to range anxiety.
Source Fool.com
