All discussion of QuantumScape QS

[JRP3]

Dan Ives from Wedbush on QS. He doesn't really know anything.

 

[chronoreverse]

Worthwhile article to read I think:
Watt's next for batteries? It'll be more of the same, not longer life, because physics and chemistry are hard

It presents this idea while not ignoring the ideas circulating around right now:

The battery industry doesn't progress by leaps and bounds," he says. "It progresses by inches. But over time inches become feet, and then miles. That's just the nature of electrochemistry: it's hard and it takes a long, long time. What people want to hear is, 'Here is a new type of battery that is completely different from what we otherwise have and solves all our problems.' And that just doesn't happen in this industry."

 

[JRP3]

QuantumScape will soon have a lot more shares trading. The company updated an S-1 filing on Wednesday night registering more than 300 million shares, with at least 60 million not subject to any lockup agreement and able to be sold as soon as the filing gets the rubber stamp from the Securities and Exchange Commission.

More shares available typically means downward pressure on a stock. In this case it is existing holders, and not the company, selling shares, meaning QuantumScape would get no cash from the offering. But existing shares could feel some near-term downward pressure.

Why QuantumScape Shares Are Falling Today | The Motley Fool

 

[SMAlset]

Wall Street Journal 1/1/21 article on Quantumscape.

The Hot Battery Startup That Could Zap Tesla

 

[bkp_duke]

Big sell-off pre-market today. Down to $66.84 as of this post. Is there some news I missed?

 

[JRP3]

Wondering the same. All I see is a Motley Fool article from a few days ago 3 Electric Vehicle Stocks to Avoid at All Costs in 2021 | The Motley Fool and a Seeking Alpha article today Stock Market Insights | Seeking Alpha

 

[bkp_duke]

This was published 3h ago:
Stock Market Insights | Seeking Alpha

 

[JRP3]

Interesting comment on the SA article:

Holy crap, the day has arrived. The SEC declared the S-1 Effective so 60 pipeholder shares are now unlocked for trading. This could triple the float. Look out below.

 

[JRP3]

This prospectus relates to the resale of shares of Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), of QuantumScapeCorporation and warrants to purchase shares of Class A Common Stock of QuantumScape Corporation as described herein. The securities offered hereunder include306,053,642 shares of our Class A Common Stock, which includes Class A Common Stock issuable upon conversion of Class B common stock, par value $0.0001 pershare (the “Class B Common Stock,” and together with the Class A Common Stock, the “Common Stock”), 254,319,175 of which are issued and outstanding, 5,770,643of which are issuable upon exercise of certain private placement warrants that were transferred to members of Kensington Capital Sponsor LLC (the “Sponsor”) thatoccurred simultaneously with the closing of the Business Combination (the “Closing”) and 804,357 of which are issuable upon exercise of certain private placementwarrants that were transferred to an affiliate of the Sponsor that occurred simultaneously with the Closing (collectively, the “Private Warrants”), 75,000 of which are...

https://d18rn0p25nwr6d.cloudfront.net/CIK-0001811414/01ab4368-6eeb-4de5-9699-941370390495.pdf
QuantumScape - Financials - SEC Filings

 

[bkp_duke]

CNBC is saying lockup expires today, so this is insiders selling. I'm assuming that's what you had above, which was too long for me to dig through quickly to find the lock-up expiration date.

 

[JRP3]

I think this is the relevant part:

On September 2, 2020, Kensington entered into separate Senior Employee Lock-Up Agreements...
Stockholder Lock-Up Agreements
In connection with the Transactions, on November 25, 2020, Legacy QuantumScape and certain stockholders of Legacy QuantumScape entered into a lock-up agreement, pursuant to which they agreed, subject to customary exceptions, not to transfer shares of Common Stock for a period of 180 days after the Closing Date.These transfer restrictions are subject to earlier release if (i) the last consecutive trading day where the sale price of the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Closing or (ii) such date on which QuantumScape completes a liquidation, merger, stock exchange or other similar transaction that results in all of QuantumScape’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property.

Bottom of page 88 and top of page 89

 

[Johan]

Oooof. There were probably a lot of people who knew this was coming right after new year. As usual retail investors with FOMO are getting screwed.

 

[bkp_duke]

I think this is the relevant part:


Bottom of page 88 and top of page 89

If I'm reading that, we haven't hit the end of the Lock-up then.

 

[JRP3]

I read this part as QS completing the merger with Kensington so shares can be sold:

or (ii) such date on which QuantumScape completes a liquidation, merger, stock exchange or other similar transaction that results in all of QuantumScape’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property.

 

[bkp_duke]

I read this part as QS completing the merger with Kensington so shares can be sold:

Missed that, could very well be.

 

[JRP3]

Clear as mud

 

[Discoducky]

Oooof. There were probably a lot of people who knew this was coming right after new year. As usual retail investors with FOMO are getting screwed.

Was the date of the lockup ending unknown to all retail investors? I sold two weeks ago after reading through the slides and listening to Jordan on Gali's youtube. I agreed that it just doesn't seem like QS has any engineering or product plan that is interesting when compared to Tesla.

 

[Johan]

Was the date of the lockup ending unknown to all retail investors? I sold two weeks ago after reading through the slides and listening to Jordan on Gali's youtube. I agreed that it just doesn't seem like QS has any engineering or product plan that is interesting when compared to Tesla.

I was never invested in QS so only followed this from a distance. But per the exchange between @JRP3 and @bkp_duke above it may be that this lockup ended because the firm (QS) performed a "business combination" with Kensington Capital Acquisition Corp. Now I don't know what a "business combination" is exactly but it could seem that "hidden in the bylaws" is the fact that should QS "complete" among other things a "merger" then the lock up period ends. So it would seem that those in the know could easily trade this kind of insider info.

QuantumScape Corporation And Kensington Capital Acquisition Corp. Announce Closing Of Business Combination; QuantumScape To Trade On NYSE Under Ticker "QS" Beginning On November 27

 

[Johan]

Also now there's this:

The Law Offices of Frank R. Cruz Announces Investigation of QuantumScape Corporation (QS) on Behalf of Investors

This law suit claims the drop in share price is due to a Seeking Alpha article regarding their battery testing conditions being... well a bit too optimal and not representative of real world use. I think it would be very hard to prove in court that one article on a blog caused a drop that big, remember this stock took off like a rocket in the weeks before so if the term "over bought" was ever fitting I guess this was it...

 

[Cosmacelf]

82M shares traded today, 10x normal volume. Yeah, I would say some lockup expired!