QuantumScape downgraded to Sell from Neutral at UBS

UBS downgraded QuantumScape (QS) to Sell from Neutral with a price target of $2.50, down from $5. New trade policies are raising the cost to make a vehicle, leading to increased consumer prices and negatively impacting demand, while production disruptions are likely, financially challenging suppliers, the analyst tells investors in a research note. Supply chains that were set up to be optimized over decades may need to be reimagined, potentially creating calls on capital not anticipated prior, the firm says, adding that Autos is not a sector that deals well with uncertainty given long planning cycles.