QuantumScape could pursue authorized motion just after coming underneath assault in a scathing report unveiled by activist brief-vendor Scorpion Funds.
“We’re unquestionably heading to glance at that,” Jagdeep Singh, chief govt of QuantumScape, reported when CNBC’s Jim Cramer requested if the organization would think about submitting fit towards the company.
“Some of the details in there are just, just absurd. Absurd to the place the place there are… items that we would want to choose lawful action on.”
Singh appeared on “Mad Revenue” Friday, 1 working day soon after Scorpion revealed the short report. In the 188-web site report, Scorpion accused QuantumScape — which became public in November by way of a blank-test merger — of operating as a “pump and dump SPAC.” It even compared the enterprise to Theranos, the disgraced health and fitness tech startup.
QuantumScape shares dropped more than 12% immediately after the data was unveiled. The stock fell once more on Friday, contributing to a 28% decrease in less than two months.
“We don’t want to get much too distracted both, but you know, we feel very fantastic about where by we are,” Singh explained.
The battery enterprise mentioned it stands by the information it offered to traders and will proceed to make a battery for its customers, such as Volkswagen, which not long ago invested another $100 million in the firm.
QuantumScape argued that Scorpion was determined to publish the report simply because it stands to gain monetarily from the subsequent fall in share price tag. Buyers who request to transform a revenue on a extreme decrease in a stock price are regarded as short-sellers.
“We’ve been normally pretty clear about what we have and the get the job done that stays to be accomplished,” Singh stated. “Which is one particular of the matters, frankly, that we delight ourselves on. We consider we’ve been the most transparent of any stable-point out battery company.”