QuantumScape tumbles 41% in first day of 2021 trading after spiking 745% last year
QuantumScapetumbled as much as 41% in its first day of 2021 tradingon Monday after staging a 745% rally in 2020.
- QuantumScape has lost more than half its value in the past week with no official news attributable to the decline, signaling that the stock's eye-popping rally was too far, too fast.
- The firm, which develops next generation batteries for electric vehicles, filed with the SEC to offer 306 million shares by selling shareholders on Thursday.
- Watch QuantumScape trade live here.
Shares of high-flying QuantumScape tumbled as much as 41% in its first day of 2021 trading on Monday. The sharp decline comes after the recently debuted SPAC IPO surged 745% in 2020.
QuantumScape went public via a SPAC in September and is developing next generation batteries for electric vehicles. The company has been backed by Microsoft co-founder and billionaire investor Bill Gates.
While there was no official news attributable to Monday's decline, QuantumScape filed with the SEC to offer 306 million shares by selling shareholders on Thursday. The company will receive up to $209 million from the exercise of all warrants attached to the offering, and lockup restrictions for part of the offering lasts until May 21.
QuantumScape's valuation peaked at nearly $50 billion in late December, and has since tumbled to $18.6 billion as of Monday afternoon. The company has lost more than half its value in the past week, signalling that the stock's dizzying rally was overextended.
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