QuantumScape Stock Bounces Back After Earnings Call Boost, Tesla Tailwinds: Retail Turns Optimistic

Shares of QuantumScape Corp. ($QS) are solidly higher on Thursday, after they fell a little over 2% in the previous session following the San Jose, California-based battery manufacturer’s third-quarter results.

Retail sentiment has seen an upheaval along with the stock rally.

On Stocktwits, the sentiment was ‘bullish’ (71/100), reversing from ‘bearish’ disposition on Wednesday. Message volume hit ‘extremely’ high. 

The stock’s decline on Wednesday came after the company reported an in-line loss per share for the third quarter. The company did not report any revenue for the quarter.

The reversal in sentiment may have to do with electric-vehicle giant Tesla, Inc.'s ($TSLA) strong quarterly results that is apparently triggering a sympathy move.  

Shares of the Elon Musk-led company rose nearly 19% after reporting unexpected profit growth and better-than-expected core auto gross margin

Tesla’s energy storage generation and storage revenue rose 52% from a year-ago to $2.38 billion and the segment clocked a record gross margin of 30.5%. The company also said it expects energy storage deployments to more than double in 2024.

QuantumScape investors may also be cheering an update the company issued on the earnings call late-Wednesday regarding start of production of its first B Sample cells — a key goal for 2024. 

Some retail investors are encouraged by the management updates on the call and see the stock as a “$30+ish.”

As of 12:45 pm ET, QuantumScape stock climbed 25.10% to $6.48.

Read Next: Tesla Stock Spikes On Q3 Earnings Beat But Retail Sentiment Remains Stubbornly Bearish

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