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 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].