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Shares of the electric vehicle battery firm have gained nearly 80% this week and about 593% over the previous three months. Each numbers aren’t actually akin to the returns of a lot else, together with the
Dow Jones Industrial Average.
Determining what’s happening isn’t simple. Anecdotally, there isn’t a number of inventory to borrow. Which means a brief squeeze is likely to be at play. Quick sellers should borrow inventory to promote it brief, betting on worth declines. No shares to borrow can imply too many brief sellers are already within the inventory.
QuantumScape inventory doesn’t look like closely shorted, but it surely’ new and it’s potential short-selling information aren’t updated. The merger that made Quantum a publicly traded participant solely closed in late November.
There may be additionally rising bullish sentiment relating to electrical automobiles and battery know-how. It’s laborious, frankly, to justify an 80% two-day worth rise although.
Essentially the most important information at present seemingly was from
(AAPL) and its potential plans to enter the EV market. A part of that story, nevertheless, was Apple’s personal battery know-how. That might be competitors for Quantum merchandise.
Regardless of the cause, beneficial properties go away Quantum inventory value nearly $59 billion based mostly on the 448 million proforma shares excellent after the corporate’s merger with a SPAC. QuantumScape wasn’t instantly out there to get an up to date share depend.
That’s greater than current battery makers
Contemporary Amperex Technology,
or CATL, (300750.China) is valued at roughly $110 billion.
The numbers and comparisons are breathtaking. Now if we solely knew why.
Write to AL Root at [email protected]