QS Stock Gains Overnight: Retail Shrugs Off Cramer's 'Lack Of Meaningful Revenue' Jibe

• Cramer cited QuantumScape as a symbol of the 2020-2021 EV stock bubble.
• He said investors drove the SPAC-backed company’s shares to nearly $132 in 2020 despite having no commercial product or significant revenue. 
• According to Cramer, sentiment later turned as investors focused on profitability and commercialization. 

QuantumScape stock is drawing attention and at the center of a growing debate after CNBC's “Mad Money” host Jim Cramer revisited the energy storage company’s dramatic rise and fall, even as new partnerships continue to strengthen its standing in the automotive industry.

QS Becomes Cramer’s Cautionary Tale 

Speaking about its SPAC-era history, Cramer pointed to QuantumScape as a reminder of the speculative excesses that surrounded electric-vehicle-related stocks during the 2020 and 2021 market boom.

Cramer said investors embraced lofty expectations long before the company had a commercial product or meaningful sales.

“QuantumScape, which in retrospect was basically a science experiment looking to develop better battery technology for electric vehicles. Anyone can develop better, more efficient batteries with the ability to charge very quickly, and you can make a killing even in a world where electric cars have lost some of their luster. But QuantumScape was a long way from having anything they could actually commercialize and they could sell. Even four years later, these guys still didn't have any meaningful revenue,” said Cramer. 

During the height of investor enthusiasm for electric-vehicle-related companies in 2020 and early 2021, QuantumScape attracted attention after it entered public markets via a special purpose acquisition company, or SPAC. 

Following the merger announcement, the SPAC in question saw its share price soar, and QuantumScape eventually climbed to nearly $132 per share in late 2020. The stock became one of the standout beneficiaries of speculative trading tied to the broader EV boom.

Cramer said sentiment shifted once investors began focusing more closely on profitability, revenue generation and commercialization timelines. He also pointed to criticism from short sellers, which added pressure as questions emerged about the company’s prospects.

“Then we started seeing short sellers come out of the woodwork, arguing it was a scam, and Wall Street gradually lost interest in companies with zero profitability, let alone super speculative names like QuantumCape. No revenue. In the end, the stock got obliterated by late 2022 and was in the single digits and has only been able to bounce above those levels at times thanks to what I regard as an occasional short squeeze,” he added.

QuantumScape stock edged 0.9% higher overnight, ahead of Thursday. 

Honda Partnership Offers Validation For QS

While critics remain focused on the company’s limited revenue generation, QuantumScape recently inked a joint research and technology evaluation agreement with Honda Motor (HMC). 

The collaboration followed technical assessments of QuantumScape’s solid-state battery platform and adds another major automotive name to the company’s list of partners, like Volkswagen’s battery subsidiary, PowerCo.

What Are QS Retail Traders Saying 

On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory. The stock saw a 215% gain in message volume over the past week, with 0.9% increase in watchers. 

A user said, “He is comparing QS to like 5 EV start ups that have gone bankrupt already too, without mentioning QS has cash runway to 2029. The only correct thing he says is they don't have GAAP revenues yet, but no mention of the customer billings that show a path to revenues soon.”

Another user said, “Wait Cramer is Bearish on QS? I guess it's time to leverage the house, cars, and kids and go Full Port here.”

A third user said, the Honda partnership is more than just an endorsement and by making this collaboration public, the agreement suggests QuantumScape can now benefit from Honda’s manufacturing expertise and existing production technology.

QS stock has slumped 31% year to date. 

Also See: BB Stock Jumps Overnight: Retail Predicts 'EPIC' Earnings Powered By BlackBerry QNX

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