Why QuantumScape, Freyr, and Plug Power Stocks Just Dropped
It's a miserable morning on the Nasdaq as the tech-heavy index tumbled 2% through 10:20 a.m. ET Wednesday. Unfortunately for renewable energy investors, their stocks are taking some of the worst damage -- and a note from investment bank Morgan Stanley is one reason.
QuantumScape (NYSE: QS), which is developing a solid-state battery for powering electric vehicles (EVs), was down 5.1%, and lithium-ion battery manufacturer Freyr Battery (NYSE: FREY) was doing even worse, down 13.9%. Hydrogen fuel cell pioneer Plug Power (NASDAQ: PLUG) isn't looking too healthy this morning, either (albeit for different reasons), as its stock tumbled 7%.
So what's ailing EV stocks this morning? Morgan Stanley seems to be the start of their troubles. Ratings-watcher The Fly is reporting that it downgraded Freyr this morning to equal weight (hold), while cutting its price target on the battery stock in half to $13 a share. The bank also cut its price target on QuantumScape -- which was already rated underweight (sell) -- by 25%, to $3 a share.
Source Fool.com
