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.
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.
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.
So many chased these EV SPACs to find the next Tesla. Many some will be gems, but for now the whole sector has collapsed. QS was one of the better SPACs, but their projections are aggressive and don't account for failure. Shares are down 76% from highs.
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.
Your Watchlist
Add stocks to watchlist to monitor them daily and get important alerts.