QuantumScape goes public via SPAC at $3.3 billion valuation as EV bubble continues to grow

September 03, 2020
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QuantumScape is the latest startup to go public via a special purpose acquisition company (SPAC); while most have been electric vehicle companies, this marks the first battery company to jump on the trend. There are a number of red flags about the announcement. The CEO claims the company has eliminated the "science risk," but further examination of investor presentations suggests the company still has yet to make a multilayer cell – a crucial step for commercializing its technology. The company does not appear to be on track to meets its aggressive targets, which include an incredible 91 GWh of production capacity by 2028 at 30% gross margins. Clients should view this as yet more evidence of the bubble growing around electric vehicles.

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