InvestorPlace – Stock Market News, Inventory and Trading
For the umpteenth announcement of 2020 through a special objective acquisition company, or SPAC, as they are most commonly known, Kensington Capital Acquisition Corp. (NYSE: KCAC) said on September 3 that it would merge with QuantumScape, based in San Jose. next generation semiconductor metal-lithium battery.
Kensington’s acquisition was not made public until June, touting 20 million sets with gross profits of $200 million. Like all SPACCs, it had a constant deadline for locating a merger partner. In the case of Kensington, 24 months.
Instead, it announced an agreement within 3 months of its IPO. Something tells me that Justin Mirro and the rest of SPAC’s sponsors already had an agreement in hand before they got their shares.
Here’s why I do it this way.
I am sure that many investors who have bought KCAC shares since the September 3 announcement have done so due to the participation of Bill Gates and Volkswagen (OTCMKTS: VWAGY) in cutting-edge commissioning.
I’ll see why it makes a lot of sense to bet on QuantumScape based on your participation in a minute, but first I need to tell you why I would invest in the company.
One comes to mind: innovation.
QuantumScape CEO and founder Jagmeet Singh founded the company in 2010 after knowing that his Tesla Roadster had a battery that was far from ideal for powering the vehicle.
“It had a limited scope. It took a long time to load. It was very small because the battery may not take care of a lot of charge. The battery was a massive component of the vehicle’s charge, so it was “A beloved car. I learned that if you can make a bigger battery, you can replace the world,” Singh told Fast Company.
Who doesn’t need to replace the world? Why are we on earth if not to make the greatest contribution imaginable given our specific talents?
Innovators like Elon Musk don’t come that often, so the fact that Singh and his team are going to create a battery generation that’s effective and affordable is mind-blowing.
Volkswagen unveiled its ID. 4 2021 gaming app vehicle on September 23, capable of towing 2,700 pounds.
My wife and I are preparing to buy a replacement vehicle for our existing Jeep Cherokee, and although we have no challenge with it, we would like to change it to electric if possible. On this front, Fiat Chrysler (NYSE: FCAV) is extraordinarily its competitors, adding Volkswagen.
Sometimes we like to drive to Prince Edward Island to make a stop at our circle of relatives in Halifax, which are about 195 miles door to door. In winter or every single time we don’t pass point-to-point, 240 miles won’t be enough.
This is a smart explanation for why Volkswagen and Bill Gates have chosen QuantumScape.
“The improvement you see in range is not due to basic innovations in battery technology,” Says Singh. “What is that other people [install] ever bigger [batteries]. “
Singh tells Fast Company to be competitive with internal combustion engines (ICE), electric cars will have to adapt to ICE cars in every metric.
These parameters come with not only the cost, but also the range, charging time, protection, and lifespan of the car. And that is precisely why we do what we do with semiconductor batteries. This also enables automakers to make electric cars that are much closer to their combustion engine rivals than classic batteries.
“So we believe this kind of advancement is precisely what other people want to start replacing their combustion cars with electric cars the next time they’re on the market to buy a car. “
Forget multiples, QuantumScape can change the rules of the game. Do I have to say more?
At the time of publication, Will Ashworth did not occupy (or occupy) any position in the values covered in this article.
Will Ashworth has been writing about full-time investments since 2008. The publications he has given the impression on come from InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and many others in the United States and Canada. that support time control. He lives in Halifax, Nouvelle-Ecosse. At the time of writing, Will Ashworth held no position in any of the previous titles.
The message I still can’t help Root for Kensington Capital Stock gave the first impression on InvestorPlace.