QuantumScape is Up 593% Since October; Normal?

QuantumScape [$QS] stock’s ambitious run up continued in Tuesday trading, as shares closed at $131.67, up another 39% after rallying 29% on Monday.

Shares of the electric-vehicle battery company have flourished 80% this week and about 593% since October. Both numbers aren’t exactly tantamount to the returns of the overall market— most notably the S&P 500 and the Dow. Walmart Jumps Into Self-Driving Vehicle Space

Needless to say, investors look to lay bare any behind-the-scenes chicanery affecting their positions. And there really isn’t a lot of stock left to borrow, which means a short squeeze could be on the horizon. Bears have to borrow stock to sell it in order to short, betting on the price dropping to capitalize on the trade. What happens when there are no more shares to borrow? Too many short sellers are already in the stock.

QuantumScape’s solid state battery (right) stores far more energy per weight and volume than regular lithium-ion cells (left), and has just passed a series of EV-related tests with flying colors

QuantumScape stock doesn’t appear to be heavily shorted, but it’s possible short-selling data aren’t up-to-date. The merger that made Quantum a publicly traded player only closed in late November. There is also a growing bullish sentiment surrounding electric vehicles and battery technology, but a 80% two-day spike is tough to defend.

The most significant news today seemingly was from Apple [$AAPL] and its plans to infiltrate the E.V. market. Part of that story, however, was Apple’s proprietary battery technology, which would pose as a competition for Quantum products. Whatever the reason, gains leave Quantum stock worth almost $59 billion based on the 448 million pro forma shares outstanding after the company’s SPAC merger. Uber Unloads Self-Driving Unit to Aurora

For scale, that’s more than existing battery makers LG Chem, Samsung SDI, and Panasonic. Contemporary Amperex Technology is valued at roughly $110 billion. Quantum market capitalization now exceeds Ford Motor [$F] and General Motors [$GM]. Quantum’s market cap is now larger than every auto company in the Russell 3000, sans Tesla [$TSLA].

Here’s Why Plug Power Has Gone Parabolic Since June

California’s QuantumScape has announced stunning performance figures for what may be the first commercially viable solid-state lithium-metal battery. It’s claimed to add as much as 80 percent to the range of an electric car, and charge from 0-80 percent in just 15 minutes. Using a solid electrolyte instead of the typical liquid solution, solid state batteries can store considerably more energy by weight and volume than today’s lithium cells, but creating one that can stand up to the rigors of use in an electric vehicle – high charge and discharge rates, long lifespans, temperature and safety concerns – has proven difficult.

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