Why QuantumScape Stock Is Plummeting Today

Group 1 - QuantumScape's stock is experiencing significant declines, with a drop of 9.5% as of 1:30 p.m. ET, and a peak decline of 11.6% earlier in the session [1] - The bearish market sentiment is influenced by reports of President-elect Donald Trump considering a national economic emergency declaration to implement tariff policies more aggressively than previously expected [3][4] - The uncertainty surrounding tariff dynamics is prompting investors to sell stocks with higher risk profiles, impacting QuantumScape, which is still in a pre-revenue state [4] Group 2 - QuantumScape may face business-specific challenges due to potential new tariff policies, which could increase production costs and decrease margins when the company eventually rolls out its solid-state batteries [5] - The company's stock has a binary outcome; if its solid-state battery technologies prove reliable and commercially viable, the valuation could significantly increase, but failure to deliver on this progress could lead to a substantial decline in stock value [6]