Electric vehicle battery manufacturer QuantumScape endured a difficult start to trading in 2021, with its stock falling by an astronomical 41% on January 4th. Several reasons have been given for this steep decline, ranging from the company’s filing known as a Resale S-1 form on December 31st to the decision by industry investors to prepare to sell shares.
QuantumScape CEO Jagdeep Singh hit back at such rumors by making the following statement: “There has been no change in business. Everything we have discussed with investors remains on track.”
He added that internal investors have shown no signs of intentions to dump stocks and that the drop that was experienced on Monday is likely a result of traders looking to boost short-term profits.
The Bill Gates-backed EV battery start-up also decided to publicly elaborate on its Resale S-1 filing on Tuesday. This was done mainly with the goal of permitting previously-issued shares to be resold.
Singh’s decision to publicly defend his company following its declining stock prices proved to be a sound financial move, as QuantumScape stocks rose by 12% following his statements.
