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Stockchase Opinions

Jim Cramer - Mad MoneyQuantumScape QSDON'T BUYJan 12, 2022

Very wary. He wants to see Volkswagon take a bigger stake in QS and then things will really get rolling.
$20.94

Stock price when the opinion was issued

$8.07

As of Jun 18, 2026. Market Open.

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DON'T BUY
It's losing a lot of money.
DON'T BUY
There's so much competition in the lithium battery space.
DON'T BUY

So many chased these EV SPACs to find the next Tesla. Many some will be gems, but for now the whole sector has collapsed. QS was one of the better SPACs, but their projections are aggressive and don't account for failure. Shares are down 76% from highs.

COMMENT
EV SPACs are facing more scrutiny from aggressive short-seller. Yesterday, a short-seller accused QS of being a pump-and-dump scam, but didn't mention sources of information. QS defends itself as being highly transparent and stands by all its published data. The CEO even did a webcast to defend themselves today.
BUY
Run by a great CEO. It's one of the few SPACs he likes. Their batteries are good.
COMMENT

They're trying to produce the first solid-state lithium battery for EVs. This stock has huge potential as it partners with Tesla.

BUY
Strategy to play their lock-up period ending It shot up before Christmas, then collapsed on bad headlines related to SEC filings and a reverse merger with another company which created 100 millions of shares. Then QS planned to sell a ton of those shares, but in reality no lock-up expired. It's since pulled back to the mid-50s, and he likes it now.
COMMENT
There's been a recent flurry of EV (e-car) SPACs-extending back to the summer, and have wracked up tremendous gains, though they collapsed in today's sell-off. Make sure you know what you buy or own here. QS is a great company, making e-car batteries. He recommended it in the teens, then to sell it last month. But QS kept rising. Now, it's in free-fall, plunging 41% today. Despite no meaningful sales, he still likes this; it has promise.
PARTIAL SELL
They're developing a better e-car battery. They have strong partnerships. This soared from $13 in late October to $76 last Thursday, but is now at $56. Take some profits after pulling back hard. But as it gets cheaper, the stock gets better. He likes the story here.