Why QuantumScape Stock Is Rocketing Higher Today
QuantumScape announces an important milestone on the way to commercializing its EV solid-state battery technology.
The company is ahead of schedule to begin field testing by EV manufacturing partners.
QuantumScape stock remains speculative, but investors sense the risk level dropping.
10 stocks we like better than QuantumScape ›
Investors have been speculating on QuantumScape (NYSE: QS) stock and its ability to revolutionize electric vehicle (EV) batteries for several years now. It's been a slow road as the company works toward commercializing its solid-state battery technology.
After the company announced a major milestone, QuantumScape shares shot higher by as much as 47% Wednesday morning. At 10:07 a.m. ET, the stock remained 40.5% higher.
When QuantumScape reported its first-quarter update, on April 23, management said it was ahead of schedule on one of its 2025 goals to bring its next planned phase into baseline production. The "Cobra" phase, which will allow it to scale up manufacturing of its solid-state battery cells, has now become a reality.
In the company's announcement, CEO Dr. Siva Sivaram stated, "By significantly improving throughput and shrinking the equipment footprint, Cobra gives us a powerful path forward for commercializing our next-generation battery technology." Co-founder and chief technology officer (CTO) Tim Holme called the advancement critical to bring its battery production "to market at gigawatt scale."
That's exactly what longtime investors have been waiting to hear from QuantumScape. With the Cobra production platform now in place, QuantumScape plans to launch field testing next year with a baseline production process for the next-generation battery technology.
Solid-state batteries include ceramic separators that should lead to safer, faster-charging, and more efficient solid-state lithium-metal batteries. The practical result could be EV travel range on a single charge that eliminates range anxiety for potential EV consumers.
QuantumScape stock is still a speculative bet. But the risk level drops as the company gets closer to commercialization. The Cobra process was a big step, and investors are rewarding the stock in a big way today.
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Howard Smith has positions in QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why QuantumScape Stock Is Rocketing Higher Today was originally published by The Motley Fool
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