Why QuantumScape Stock Skyrocketed 35% Today
The company claims it will enable much faster, more efficient battery production.
10 stocks we like better than QuantumScape ›
Shares of QuantumScape (NYSE: QS) finished the day up 35%. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.8% and 1%, respectively.
QuantumScape stock is continuing its run-up following a major announcement earlier this week. The company announced on Tuesday that it had achieved a "major milestone" in developing its solid-state lithium battery. QuantumScape says it has integrated its Cobra separator process -- a key element of its next-generation battery manufacturing -- into its baseline production line.
The company says that this will enable "faster, more energy-efficient production with a smaller equipment footprint compared to earlier processes," claiming it is a "25x improvement" over its prior process.
In a press release, QuantumScape's co-founder and CTO Tim Holme described Cobra as "a step-change innovation in ceramic processing," adding that it will enable "a major improvement in productivity compared to Raptor, which was already a considerable advancement compared to the previous generation."
QuantumScape stock is down more than 90% from its high in 2020. That's because the company has a history of making major claims and failing to deliver on those promises. Still, the technology is promising and would certainly be disruptive if it can bring its solid-state batteries to market. There's a lot of competition, though.
If QuantumScape falls behind its rivals, the stock could collapse. I would stay away from QuantumScape, unless you have a particularly high risk tolerance.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why QuantumScape Stock Skyrocketed 35% Today was originally published by The Motley Fool
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