QuantumScape might pursue authorized motion after coming underneath assault in a scathing report launched by activist short-seller Scorpion Capital.
“We’re completely going to take a look at that,” Jagdeep Singh, chief government of QuantumScape, stated when CNBC’s Jim Cramer requested if the corporate would think about submitting go well with in opposition to the agency.
“A few of the factors in there are simply, simply absurd. Absurd to the purpose the place there are… issues that we might wish to take authorized motion on.”
Singh appeared on “Mad Cash” Friday, sooner or later after Scorpion printed the brief report. Within the 188-page report, Scorpion accused QuantumScape — which grew to become public in November via a blank-check merger — of working as a “pump and dump SPAC.” It even in contrast the corporate to Theranos, the disgraced well being tech startup.
QuantumScape shares dropped greater than 12% after the data was launched. The inventory fell once more on Friday, contributing to a 28% decline in lower than two weeks.
“We do not wish to get too distracted both, however , we really feel fairly good about the place we’re,” Singh stated.
The battery firm stated it stands by the information it introduced to buyers and can proceed to construct a battery for its prospects, corresponding to Volkswagen, which just lately invested one other $100 million within the firm.
QuantumScape argued that Scorpion was motivated to publish the report as a result of it stands to profit financially from the following drop in share value. Buyers who search to show a revenue on a extreme decline in a inventory value are generally known as short-sellers.
“We have been at all times fairly clear about what we now have and the work that continues to be to be performed,” Singh stated. “That is one of many issues, frankly, that we satisfaction ourselves on. We predict we have been probably the most clear of any solid-state battery firm.”