Reported about 1 month ago
Quantumscape Corporation is increasingly reliant on PowerCo, a subsidiary of Volkswagen, under an IP License Agreement to scale its technology, which poses significant business risks. This dependency limits Quantumscape's control over manufacturing decisions and ties it to PowerCo’s operational and financial stability, affecting technology development, capital acquisition, and execution of business plans. Additionally, the complexity of auditing royalty payments could further complicate Quantumscape's financial situation, leading to a Wall Street consensus rating of Hold for its stock.
Source: YAHOO