QuantumScape might pursue authorized motion after coming underneath assault in a scathing report launched by activist short-seller Scorpion Capital.
“We’re completely going to have a look at that,” Jagdeep Singh, chief govt of QuantumScape, mentioned when CNBC’s Jim Cramer requested if the corporate would think about submitting go well with in opposition to the agency.
“Among the factors in there are simply, simply absurd. Absurd to the purpose the place there are… issues that we’d wish to take authorized motion on.”
Singh appeared on “Mad Cash” Friday, sooner or later after Scorpion printed the quick report. Within the 188-page report, Scorpion accused QuantumScape — which turned public in November by a blank-check merger — of working as a “pump and dump SPAC.” It even in contrast the corporate to Theranos, the disgraced well being tech startup.
QuantumScape shares dropped greater than 12% after the knowledge was launched. The inventory fell once more on Friday, contributing to a 28% decline in lower than two weeks.
“We do not wish to get too distracted both, however you recognize, we really feel fairly good about the place we’re,” Singh mentioned.
The battery firm mentioned it stands by the information it offered to buyers and can proceed to construct a battery for its prospects, comparable to Volkswagen, which lately invested one other $100 million within the firm.
QuantumScape argued that Scorpion was motivated to publish the report as a result of it stands to profit financially from the next drop in share worth. Traders who search to show a revenue on a extreme decline in a inventory worth are generally known as short-sellers.
“We have been all the time fairly clear about what we now have and the work that continues to be to be finished,” Singh mentioned. “That is one of many issues, frankly, that we delight ourselves on. We predict we have been essentially the most clear of any solid-state battery firm.”