Illustration by Elies Stein
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QuantumScape‘s
the amazing climb continued last week, as a gift from a Santa market. Shares of the electric vehicle battery maker closed at $ 131.67, up 39% after meeting 29% on Monday. The shares gained nearly 70% in one week and 390% since it went public in late November.
On Tuesday, Quantum shares were worth $ 59 billion, based on fully diluted 448 million pro forma shares. The company passed rivals, including
Lg Chemical,
Samsung SDI,
i
Panasonic,
in market value. An exception: that of China
Contemporary Amperex technology,
which was worth approximately $ 110 billion. But Quantum also had a market value greater than
Ford engine
i
General Motors,
all except Russell 3000 auto components
Tesla,
and two of the world’s largest auto parts companies, the Japanese
Dense
and from Germany
Continental.
Shares retreated over the weekend to a market capitalization of $ 51 billion.
QuantumScape was made public in a merger with a special purpose acquisition company, or SPAC, Kensington Capital Acquisition. GMO Jeremy Grantham invested $ 12.5 million in QuantumScape seven years ago through its founding, a 4.8 million shareholding that now exceeds $ 551 million. (GMO confirmed that it still owns all the shares). Grantham doesn’t like SPACs, he told the Financial Times, but the stake “accidentally” became the biggest investment he has ever made.
What really drives the actions? Anecdotally, there isn’t much stock to borrow, which suggests a small squeeze. And electric vehicles and batteries are hot right now. Tesla continues to rise and Reuters reported
apple
plans to enter the electric vehicle market in 2024, with its own battery technology, which could compete with Quantum. Or maybe it’s just Santa.
Next week
Monday 28/12
The Federal Reserve The Dallas Bank publishes its Texas manufacturing outlook survey in December. The consensus estimate is 11 readings, similar to the November figure. The index has risen sharply from the record low set in April and has peaked since the end of 2018.
Tuesday 29/12
S&P
CoreLogic
launches its national Case-Shiller home price index in the US. Economists forecast a 7% year-on-year increase, coinciding with September data. This figure is the highest in the index since May 2014, as the housing market remains a bright spot for the economy.
Wednesday 12/30
The Institute of Supply Management publishes its Chicago Purchasing Manager Index for December. Expectations are 56.8 readings, a decrease from November 58.2.
Tiffany holds a special virtual shareholders meeting to vote on a merger proposal with
LVMH Moët Hennessy Louis Vuitton.
LVMH initially agreed to buy Tiffany in a total cash transaction for $ 135 per share 13 months ago in a deal valued at $ 16 billion. Due in part to the shutdowns caused by the pandemic, the price was renegotiated to $ 131.50 per share in October, saving LVMH $ 430 million.
The National Association of Realtors publishes its outstanding home sales index for November. Expectations are for a flat read, month after month. The index fell 1% in September and October, after recording strong gains in the summer. Currently, the index is just below its all-time high set in early August.
Devon Energy
i
WPX Energy
hold special shareholder meetings to seek approval of the proposed peer merger proposal that was first announced in late September. Under the terms of the agreement, Devon’s shareholders would own 57% of the combined entity, which would have a business value of approximately $ 16 billion.
The Census Bureau reports on the international trade balance of goods for November. It is expected to reach a deficit of about $ 80 billion, similar to the last four months. The trade deficit in goods hit a record high of $ 83.9 billion a month in August.
Mortgage bankers The Association publishes its composite market index, which tracks the volume of mortgage loan applications, for the week ending December 25th. , with a recent 2.86%.
Thursday 31/12
Fixed income markets close early at 14:00 EST for New Year’s Eve. However, the New York Stock Exchange and the Nasdaq maintain regular business hours.
The Department of Labor reports initial unemployment claims for the week ending December 26th. Claims for unemployment have risen in December, averaging 852,000 a week, as Covid-19 cases have risen in some parts of the country. As of December, claims had fallen every month since April, averaging 740,500 a week in November, below the April high of more than five million a week.
Friday 1/1
Stock markets and bonds they close in New Year’s Day observation.
Write to Al Root at [email protected]