Opinions
Jim Cramer - Mad Money
QuantumScape
QS-N
PARTIAL SELL
Dec 14, 2020
They're developing a better e-car battery. They have strong partnerships. This soared from $13 in late October to $76 last Thursday, but is now at $56. Take some profits after pulling back hard. But as it gets cheaper, the stock gets better. He likes the story here.
$56.100
Stock price when the opinion was issued
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COMMENT
There's been a recent flurry of EV (e-car) SPACs-extending back to the summer, and have wracked up tremendous gains, though they collapsed in today's sell-off. Make sure you know what you buy or own here. QS is a great company, making e-car batteries. He recommended it in the teens, then to sell it last month. But QS kept rising. Now, it's in free-fall, plunging 41% today. Despite no meaningful sales, he still likes this; it has promise.
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BUY
Strategy to play their lock-up period ending It shot up before Christmas, then collapsed on bad headlines related to SEC filings and a reverse merger with another company which created 100 millions of shares. Then QS planned to sell a ton of those shares, but in reality no lock-up expired. It's since pulled back to the mid-50s, and he likes it now.
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COMMENT
They're trying to produce the first solid-state lithium battery for EVs. This stock has huge potential as it partners with Tesla.
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COMMENT
EV SPACs are facing more scrutiny from aggressive short-seller. Yesterday, a short-seller accused QS of being a pump-and-dump scam, but didn't mention sources of information. QS defends itself as being highly transparent and stands by all its published data. The CEO even did a webcast to defend themselves today.
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DON'T BUY
It went public in Nov. 2020, a time when anything EVs rallied. This jumped 50% when it IPO'd. Hype. Then, shortsellers called it a scam. The company hasn't made money or profits. No revenues. By late 2022, shares were obliterated along with many EV shares of this era like Lordstown Motors.
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