{"id":1565,"date":"2025-07-18T16:42:38","date_gmt":"2025-07-18T16:42:38","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/07\/18\/why-quantumscape-stock-price-jumped-and-why-it-may-crash-soon\/"},"modified":"2025-07-18T16:42:38","modified_gmt":"2025-07-18T16:42:38","slug":"why-quantumscape-stock-price-jumped-and-why-it-may-crash-soon","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/07\/18\/why-quantumscape-stock-price-jumped-and-why-it-may-crash-soon\/","title":{"rendered":"Why QuantumScape stock price jumped and why it may crash soon"},"content":{"rendered":"
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QuantumScape stock price has staged a strong comeback in a GameStop-like fashion. QS shares soared to a high of $14.22, up by over 315% from the lowest point this year, making it one of the best-performers in Wall Street. This article explains why it has jumped and why it will plunge soon.<\/p>\n

Why QuantumScape stock surged<\/h2>\n

There are two main reasons why the QS stock price has surged in the past few weeks. First, the surge ignited after the company announced that it had achieved a major milestone in the scale-up of its production capabilities.<\/p>\n

In this, QuantumScape said that it had managed to integrate its advanced Cobra separator<\/a> process into its baseline cell production. Cobra will enable faster and more energy efficient production with a small equipment footprint compared to Raptor, its previous process. The company said<\/a>:<\/p>\n

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\u201cCobra is a step-change innovation in ceramic processing, enabling a major improvement in productivity compared to Raptor, which was already a considerable advancement compared to the previous generation.\u201d<\/p>\n<\/blockquote>\n

The company hopes that this process will help it become a big force in the solid-state battery industry, which analysts believe will be critical in the electric vehicle industry.<\/p>\n

These batteries are better than the existing ones because they charge fast and have a longer range.<\/p>\n

Second, the QS stock price surged because of a short-squeeze among investors because it is one of the most shorted companies. Data shows that the company has a short interest of 13.6%, which is higher than most companies. This short-squeeze resembles that of GameStop and AMC in 2021.<\/p>\n

Risks to the QS stock rally<\/h2>\n

There are three key reasons why the QuantumScape stock price may crash soon. First, history shows that companies that go through a shows that stocks that go through a short-squeeze often plunge after the momentum fades. For example, GameStop and AMC Entertainment remains much lower than their peak in 2021.<\/p>\n

Second there are signs that QuantumScape\u2019s insiders<\/a> are selling the stock, which is a red flag. These insiders have sold over 5.6 million shares in the last 12 months. <\/p>\n

Further, the company\u2019s battery technology is facing substantial competition from Chinese companies. BYD and CATL have come up with a battery that can charge in 5 minutes and travel for hundreds of miles.<\/p>\n

Additionally, QuantumScape\u2019s business relies mostly on Volkswagen, which is also a major investor. The risk here is that the company may opt for other battery suppliers since QuantumScape will take time to bring its batteries to scale.<\/p>\n

QuantumScape stock price analysis<\/h2>\n
QS stock chart | Source: TradingView<\/a><\/figcaption><\/figure>\n

The daily chart shows that the QS stock price also surged for a key technical reason. It formed a falling wedge pattern, a popular bullish reversal sign. <\/p>\n

The stock is at risk of a reversal because it has become highly overbought, with the Relative Strength Index (RSI) has jumped to 90. Other oscillators have also surged in the past few months.<\/p>\n

The other risk is that it has deviated substantially from the moving averages. This means that it may soon go through a mean reversion, where an asset moves back to its historical averages. This means that it may drop to $10, the highest swing in January last year.<\/p>\n

The post Why QuantumScape stock price jumped and why it may crash soon<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

QuantumScape stock price has staged a strong comeback in a GameStop-like fashion. QS shares soared to a high of $14.22, up by over 315% from the lowest point this year, making it one of the best-performers in Wall Street. This article explains why it has jumped and why it will plunge soon.Why QuantumScape stock surgedThere…<\/p>\n","protected":false},"author":1,"featured_media":1566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1565"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1566"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}