Bill Gates-Backed QuantumScape Accused of Fraud; Shares Tumble
Investing.com
Published Apr 15, 2021 12:52PM ET
By Christiana Sciaudone
Investing.com -- Bill Gates-backed QuantumScape is "a pump and dump SPAC scam by Silicon Valley celebrities that makes Theranos look like amateurs."
That's according to Scorpion Capital.
Quantumscape Corp (NYSE:QS), which makes lithium car batteries for vehicles, tumbled almost 13% after the short-seller published a scathing 188-page presentation accusing QuantumScape of all manners of fraud.
"Our due diligence of QuantumScape’s six key technical claims leads us to conclude they lack credibility and exhibit Theranos-like red flags," according to the presentation. "Volkswagen (DE:VOWG_p) employees indicate that engineers and battery experts internally are highly skeptical of QuantumScape’s claims, getting 'nice Powerpoint slides' and little else."
Volkswagen AG (DE:VOWG) is also a backer of the company.
A Quantumscape representative wasn't immediately available.
QuantumScape went public via a special-purpose acquisition company in December, raising almost $700 million. Shares have dropped around 70% since then. It's the latest company to be targeted by a short-seller. Last year, the founder of Nikola Corp (NASDAQ:NKLA), Trevor Milton, stepped down after Hindenburg Research accused that company of fraud. It went public via SPAC in June.
Theranos, led by Elizabeth Holmes, claimed to have devised quick tests that needed small amounts of blood and raised some $700 million, giving it a $10 billion valuation. Holmes has since been charged with fraud by the Securities and Exchange Commission, and is set to be on trial for wire fraud and conspiracy in California later this year.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.