Shares of Kensington Capital Acquisition jumped 18% during the open Friday following the unique purpose acquisition business, or SPAC, said its pending merger with QuantumScape is conclusion that is nearing. QuantumScape is definitely an company that is early-stage a lot of potential and a lot of doubt, but investors appear excited by the chance to obtain its shares.
Kensington Capital had been formed previously this present year being a alleged blank-check company, which is really a shell that goes general public then merges with an company that is existing. SPACs are a route that is popular the general public markets this year, with Virgin Galactic Holdings, DraftKings, and Nikola one of the organizations that have gone general public that way within the last few year.
Kensington in very early announced plans to merge with QuantumScape, which is trying to produce a solid-state lithium-metal battery pack for electric cars along with other applications. In theory, solid-state designs hold lots of benefits within the lithium-ion batteries now being used as they are more stable and offer greater power thickness than what’s today which can be found.
The larger density should mean more kilometers per charge, along with fewer batteries required, the weight should really be paid off because of it of electric vehicles. But for all the prospective in solid-state batteries, this has shown tricky to try to commercialize them.
Investors appear to have an appetite to just accept the chance that accompany this technology that is nascent. The shares are through to after Kensington Capital announced that investors will undoubtedly be asked to vote regarding the merger on Nov. 25, meaning the offer could close in the months in the future Friday.
One needs to look no more than just what has happened with Nikola to understand dangers that include purchasing early-stage technologies with a SPAC. That said, there’s a complete great deal to like about QuantumScape.
Bill Gates is definitely an investor, because is one-time Tesla (NASDAQ:TSLA) primary technology officer J.B. Straubel, who’s on QuantumScape’s board. Straubel has stated he believes ” the ongoing business possesses an possibility to redefine the battery pack landscape.” Shares of Kensington Capital Acquisition jumped 18%.
Possibly most significant, QuantumScape counts Volkswagen that is automaker OTC:VWAGY) as both an investor and an individual. Volkswagen would like to be a frontrunner in electric cars, creating a huge market that is prospective QuantumScape batteries.
Presuming all goes to prepare, QuantumScape will trade regarding the quickly NY Stock Exchange under the ticker QS. It’s still early days, plus some care is warranted, but there is reason that is great investors to be excited.