QuantumScape Corporation (QS) announced on 31st March 2021 that Volkswagen Group of America Investments, LLC successfully approved the second $100 million investment under the May 14thstock purchase agreement between QuantumScape and Volkswagen. QS stock increased 1.54% and closed at $44.75 after the announcement of the agreement.
Overview of QuantumScape Corporation
QuantumScape Corporation is a United States company that is a leader in the production of next generation solid state lithium metal batteries, which are generally cheaper, that are used in electric vehicles. QuantumScape was founded in 2010 and later in 2012 they started working with the German automobile giant Volkswagen. Volkswagen is the biggest shareholder of QuantumScape after the $100 million investment. QuantumScape and Volkswagen have established a joint project for the mass production of solid state batteries. One of the biggest investors include the billionaire philanthropist and founder of Microsoft, Bill Gates. QuantumScape has almost 200 employees and is on a mission to revolutionize energy storage to enable sustainable storage.
$100 million dollar investment agreement
QuantumScape Corporation announced on Wednesday 31st March 2021 that they have successfully met the technical milestone, a condition that was set to close the additional $100 million investment by Volkswagen Group of America Investments, LLC in QuantumScape. The technical milestone included Volkswagen to test the successful latest generation of QuantumScape’s solid-state lithium-metal cells in their German labs. The test turned out to be a success. Under the 14th May 2020 stock purchase agreement, this will be the second and last closing between Volkswagen and QuantumScape. This marks the total of $200 million Volkswagen has now invested in QuantumScape.
Effect on QS stock
QS Stock soared a stunning 14.64% in after-hours trading session after the announcement of the successful completion of this technical milestone. The QS stock closed at $44.75, increasing 1.54% on 31st March 2021. Last week, the QS shares were down 12.4% on Wednesday, after a 10.6% drop on Tuesday. This happened after the company had announced its intention to raise more capital through the public offering of common stock. But the recent development regarding the $100 million investment agreement has proved beneficial for QS stock and its price increased gradually.