QuantumScape could take legal action after being attacked in a scathing report released by activist Scorpion Capital.
“We will absolutely analyze it,” said Jagdeep Singh, chief executive of QuantumScape, when CNBC’s Jim Cramer asked if the company would consider filing a lawsuit against the company.
“Some of the points there are absurd. Absurd to the point that there are … things on which we would like to take legal action.”
Singh appeared on “Mad Money” on Friday, a day after Scorpion released the brief report. In the 188-page report, Scorpion accused QuantumScape – which was made public in November through a blank verification merger – of operating as a “pumping and dumping SPAC.” He even compared the company to Theranos, the disgraced health technology startup.
Shares of QuantumScape fell more than 12% after the information was released. Shares fell again on Friday, contributing to a 28% drop in less than two weeks.
“We don’t want to be too distracted either, but you know, we feel pretty good about where we are,” Singh said.
The battery company said it maintains 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 Scorpion had the motivation to publish the report because it would benefit financially from the subsequent fall in stock prices. Investors looking to make a profit from a sharp fall in stock prices are known as short sellers.
“We’ve always been pretty transparent about what we have and the work that remains to be done,” Singh said. “That’s one of the things, frankly, that we’re proud of. We think we’ve been the most transparent of any solid-state battery company.”