Shares of QuantumScape Corp. (QS) - Get QuantumScape Corporation Class A Report dropped premarket Wednesday after the electric-vehicle-battery maker reported first-quarter results that missed estimates.
The San Jose, Calif., company reported a net loss of 20 cents a share, compared with a 6-cent loss in the year-earlier quarter. Analysts polled by FactSet expected a loss of 7 cents a share for the latest period.
"Since going public in November, we have advanced our technology considerably and hit our key technical goals, as demonstrated in the technical performance data we have released," Chief Executive Jagdeep Singh said.
The company noted that at the end of March it met a key technology milestone, which prompted an additional $100 million investment from Volkswagen. VWAGY
QuantumScape shares at last check were down 3.6% to $28.43.
The company didn't report any revenue for the latest quarter.
It expects to enter 2022, however, with more than $1.3 billion in liquidity, thanks to the proceeds from a follow-on equity offering, Volkswagen's investment and public exercises of warrants.
The company expects to deliver prototype samples to automotive original equipment manufacturers from its engineering line by 2022.
Last month, QuantumScape was the subject of a so-called pump-and-dump allegation.
A Scorpion Capital report charged that the company claimed "to have a 'magic material' that’s led to a breakthrough solid-state battery for electric vehicles."
QuantumScape said it stood by its data, describing Scorpion as "a financially incentivized short seller" that was looking to "short a stock, follow with a negative 'report,' make money on their short position, and quickly cover to lock in their gains."
The company also noted some of the disclosures in the Scorpion report, including one that states, "the quotations of experts used in this article do not reflect all information they have shared with us, including, without limitation, certain positive comments and experiences with respect to QuantumScape.”