Why is QS price dropping?

The stock price of QS has experienced a significant drop of 14.48% on July 22. The price drop of QuantumScape (QS) can be attributed to the following factors: 1. **Negative Earnings**: QuantumScape reported a net loss of $114.4 million in Q1 2025, with an adjusted EBITDA loss of $64.6 million. The company also expects a full-year loss between $250 million and $280 million. Negative earnings can lead to a decline in investor confidence and stock price. 2. **Termination of Lease**: QuantumScape's decision to terminate a large facility lease is expected to save approximately $18.7 million in future lease payments, offset by a one-time termination cost of $2.3 million. Although this move is strategic, it could signal financial distress, leading to concerns about the company's viability and potentially impacting investor confidence. 3. **Market Volatility**: The stock market, including QuantumScape, can experience volatility due to various factors such as corporate earnings reports, economic data, and investor sentiment. Market volatility can lead to fluctuations in stock prices, including declines. In conclusion, the price drop of QS is likely a result of a combination of factors including negative earnings, termination of lease and market volatility. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |QS|QS.N|QuantumScape|20250718|7.6471|169| |QS|QS.N|QuantumScape|20250721|-14.4809|169| |QS|QS.N|QuantumScape|20250722|-14.480874316939898|169| |code|Ticker|Name|Date|Pre-Market Percentage Change|market_code| |---|---|---|---|---|---| |QS|QS.N|QuantumScape|20250722|-9.265175718849841|169| |code|Ticker|Name|Date|Post-Market Percentage Change|market_code| |---|---|---|---|---|---| |QS|QS.N|QuantumScape|20250722|-4.552715654952079|169|