Quantumscape Corporation (QS) has disclosed a new risk, in the Debt & Financing category.
Quantumscape Corporation faces significant financial risk from persistent inflation and rising interest rates, which threaten to elevate their material, labor, and construction costs. While inflation has not yet materially impacted their financials, escalating raw material and labor costs are a concern. The company’s strategies to combat these pressures—such as exploring alternative vendors, supply chain vertical integration, and product redesign—remain untested in mitigating long-term growth impact. Should Quantumscape fail to pass on increased costs to customers or find other efficiencies, their financial condition and operational results could suffer.
Overall, Wall Street has a Moderate Sell consensus rating on QS stock based on 2 Sells and 3 Holds.
To learn more about Quantumscape Corporation’s risk factors, click here.
