QuantumScape (NYSE: QS) stock edged 0.9% higher overnight as retail investors pushed back against sharp criticism from CNBC’s “Mad Money” host Jim Cramer.
Cramer used QuantumScape as a central example of the speculative excess that defined the electric vehicle stock boom of 2020 and 2021.
The company went public through a special purpose acquisition company, and following its merger announcement, shares climbed to nearly $132 per share in late 2020.
Cramer argued that investors poured money into the company long before it had any commercial product or significant revenue to justify that kind of valuation.
“QuantumScape, which in retrospect was basically a science experiment looking to develop better battery technology for electric vehicles,” Cramer said, adding that “even four years later, these guys still didn’t have any meaningful revenue.”
Cramer also pointed to short sellers who publicly questioned the company’s prospects, which he said helped accelerate a broader Wall Street retreat from unprofitable, speculative names.
“Then we started seeing short sellers come out of the woodwork, arguing it was a scam, and Wall Street gradually lost interest in companies with zero profitability, let alone super speculative names like QuantumScape,” Cramer said.
He noted the stock was “obliterated by late 2022” and fell into single digits, with any subsequent recoveries attributed to what he described as “an occasional short squeeze.”
Despite the criticism, QuantumScape recently signed a joint research and technology evaluation agreement with Honda Motor, adding another major automaker to its list of partners alongside Volkswagen’s battery subsidiary, PowerCo.
One Stocktwits user pointed out that Cramer failed to mention the company’s cash runway extending to 2029, as well as customer billings that suggest a path toward future revenues.
Another user on the platform quipped that Cramer’s bearish stance was itself a contrarian buy signal, joking about going “Full Port” on the stock in response.
A third user argued the Honda collaboration is more than symbolic, suggesting QuantumScape could benefit directly from Honda’s manufacturing expertise and existing production technology.
Retail sentiment on Stocktwits remained in “bullish” territory, with message volume surging 215% over the past week and the number of watchers rising 0.9%.
Despite the overnight optimism, QS stock remains down 31% year to date, reflecting the ongoing tension between the company’s technological promise and its lack of commercial revenue.
