QuantumScape Stock Crashes: What’s Behind the Bloodbath?

Another week, another tech darling getting mauled by Wall Street. QuantumScape—the solid-state battery hopeful that had investors drooling—just got its teeth kicked in. Here's why the bulls are running for cover.

The hype train derails (again)

Remember when this was the next big thing in energy storage? Neither do we. The stock's nosedive proves even the shiniest tech can't escape market gravity when delivery timelines stretch into 'maybe never' territory.

Short sellers smell blood

While retail investors were busy diamond-handing their bags, the smart money was quietly building bearish positions. Now the squeeze is going the wrong way—typical for a stock that traded more on Elon Musk fanfic than actual revenue.

Wake-up call or buying opportunity?

Either QuantumScape delivers working batteries tomorrow, or it becomes another cautionary tale in the SPAC graveyard. But hey—at these prices, even the bagholders might consider averaging down. Or maybe they'll just wait for the next 'revolutionary' tech IPO to lose money on.

Image source: Getty Images.

QuantumScape stock sank in response to negative analyst coverage

Last Sunday, Goldman Sachs published new coverage on QuantumScape and reiterated a sell rating on the stock. While Goldman's lead analyst on the stock raised the investment firm's one-year price target from $2 per share to $3 per share, the new valuation target was still strongly bearish.

Even after a big sell-off this week, Goldman's updated target suggests potential downside of roughly 64% for the stock. The negative coverage on QuantumScape kicked off strong selling pressures early in the week, and shares took another step back on Friday in response to developments suggesting a less favorable macroeconomic outlook.

Will macroeconomic developments keep pressuring QuantumScape?

QuantumScape and other growth stocks saw significant pullbacks Friday in response to a worse-than-expected July jobs report and the announcement of new tariffs from President Donald Trump. The Federal Reserve announced earlier in the week that it was not lowering the benchmark interest rate, and the combination of unfavorable macroeconomic news prompted a big sell-off for stocks at the end of the week.

While QuantumScape has recently scored wins with new manufacturing processes and an expanded contract with's PowerCo subsidiary, it remains a highly speculative stock with an uncertain outlook. If macroeconomic conditions broadly shift in less favorable directions, QuantumScape stock could be at risk of significant downside volatility in the NEAR term.