QuantumScape could take legal action after being attacked in a harsh report, published by Scorpion Capital activist.
“We will absolutely analyze this,” said Jagdeep Singh, chief executive of QuantumScape, when CNBC’s Jim Cramer asked if the company would consider taking action against the company.
“Some of the points there are just absurd. Absurd to the point where there are … things we would like to take to court.”
Singh appeared on “Mad Money” on Friday, a day after Scorpio published the short report. In the 188-page report, Scorpio accused QuantumScape – which went public in November through an unverified merger – of operating as a “SPAC pump and dump.” He even compared the company to Theranos, the embarrassed health technology startup.
QuantumScape shares fell more than 12% after the release of the information. The stock fell again on Friday, contributing to a 28% drop in less than two weeks.
“We don’t even want to distract ourselves too much, but you know, we feel pretty good about where we are,” Singh said.
The battery company said it respects the data it presented to investors and will continue to build a battery for its customers, such as Volkswagen, which recently invested another $ 100 million in the company.
QuantumScape argued that Scorpio was motivated to publish the report because it should benefit financially from the subsequent fall in share prices. Investors trying to make a profit on a severe fall in stock prices are known as short sellers.
“We have always been quite transparent about what we have and the work that remains to be done,” Singh said. “Honestly, that’s one of the things we’re proud of. We think we’ve been the most transparent of any solid-state battery company.”