Fundamentals have changed since our recent rally, and not in QuantumScape's favor. Toyota has announced groundbreaking news on the state of their Solid State Batteries, and will reveal a new vehicle utilizing the tech next year. When we first heard of QuantumScape's news, it seemed groundbreaking. Now, drastically less so... we just had not heard from other market leaders on the topic for some time. The mania which drove this stock to such extreme valuations here (no revenue expected for 2+ years, mass production 4-5) is likely to break down and I expect it to safely revisit previous highs for support.
There could be a bit of a fight in the $66 range, as it is a local low, but don't expect it to hold for long (if it even does). Attention will surely shift away from this stock (watch for falling volume) and re-stabilize the price at more attractive accumulation levels for long-term investors. Long-term buyers should know that Shares Outstanding are vastly underreported due to IPO taking place through a SPAC, so market caps on common sites (Yahoo Finance, Google) are horribly inaccurate (which attentive investors are aware of). Stop loss can be set even tighter than where I indicate, and profits can be taken at trendline support.
Disclaimer: I currently hold Put positions on this security. None of this information is to be construed as investment advice, but are rather merely my observations.
There could be a bit of a fight in the $66 range, as it is a local low, but don't expect it to hold for long (if it even does). Attention will surely shift away from this stock (watch for falling volume) and re-stabilize the price at more attractive accumulation levels for long-term investors. Long-term buyers should know that Shares Outstanding are vastly underreported due to IPO taking place through a SPAC, so market caps on common sites (Yahoo Finance, Google) are horribly inaccurate (which attentive investors are aware of). Stop loss can be set even tighter than where I indicate, and profits can be taken at trendline support.
Disclaimer: I currently hold Put positions on this security. None of this information is to be construed as investment advice, but are rather merely my observations.