QuantumScape's Solid-State Battery Prospects Analyzed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy QS?
Source: Fool
- Technological Edge: QuantumScape's QSE-5 battery boasts an energy density of 844 Wh/L and can charge from 10% to 80% in just 12.2 minutes, showcasing a significant technological advantage over traditional lithium-ion batteries, which typically have an energy density of 300-700 Wh/L and require 20 minutes to an hour for charging, potentially revolutionizing the EV battery market.
- Commercialization Challenges: Although QuantumScape initially aimed to commercialize its batteries in 2024, it has postponed this target to the end of 2026 due to technical and manufacturing hurdles, indicating difficulties in achieving scalable production that may affect investor confidence.
- Financial Outlook: QuantumScape is projected to generate $5 million in revenue in 2026 while facing a net loss of $390 million; however, its expanded partnership with Volkswagen has provided additional funding, extending its cash runway through 2029, which is crucial for its survival.
- Market Potential: According to Grand View Research, the solid-state battery market is expected to grow at a CAGR of 31.8% from 2026 to 2033, and if QuantumScape achieves $61 million in revenue in 2027 and maintains a 30% growth rate, it could reach $294 million in revenue by 2033, highlighting its long-term growth potential.
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Analyst Views on QS
Wall Street analysts forecast QS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QS is 11.29 USD with a low forecast of 2.50 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
0 Buy
6 Hold
2 Sell
Hold
Current: 9.170
Low
2.50
Averages
11.29
High
16.00
Current: 9.170
Low
2.50
Averages
11.29
High
16.00
About QS
QuantumScape Corporation is developing solid-state lithium-metal battery technology for electric vehicles (EVs) and other applications. The Company’s solid-state lithium-metal battery technology is designed to offer energy density, faster charging, and enhanced safety. Its battery cells have none of the host materials used in conventional anodes. The Company's cells are anode-free in that they are manufactured without anodes in a discharged state. It has demonstrated a solid-state separator for lithium-metal batteries capable of resisting dendrite formation at higher power densities, such as those required for automotive applications and fast charging, for at least 800 cycles at around 25 degrees Celsius. The Company's solid-state electrolyte-separator is a dense, entirely inorganic ceramic. The Company's solid-state battery technology has applicability in other markets, including stationary storage and consumer electronics, such as smartphones and wearables, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
QuantumScape's Solid-State Battery Prospects Analyzed
- Technological Edge: QuantumScape's QSE-5 battery boasts an energy density of 844 Wh/L and can charge from 10% to 80% in just 12.2 minutes, showcasing a significant technological advantage over traditional lithium-ion batteries, which typically have an energy density of 300-700 Wh/L and require 20 minutes to an hour for charging, potentially revolutionizing the EV battery market.
- Commercialization Challenges: Although QuantumScape initially aimed to commercialize its batteries in 2024, it has postponed this target to the end of 2026 due to technical and manufacturing hurdles, indicating difficulties in achieving scalable production that may affect investor confidence.
- Financial Outlook: QuantumScape is projected to generate $5 million in revenue in 2026 while facing a net loss of $390 million; however, its expanded partnership with Volkswagen has provided additional funding, extending its cash runway through 2029, which is crucial for its survival.
- Market Potential: According to Grand View Research, the solid-state battery market is expected to grow at a CAGR of 31.8% from 2026 to 2033, and if QuantumScape achieves $61 million in revenue in 2027 and maintains a 30% growth rate, it could reach $294 million in revenue by 2033, highlighting its long-term growth potential.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
QuantumScape Stock Rises Ahead of Earnings Report
- Production Milestone Boosts Sentiment: QuantumScape's inauguration of the Eagle Line facility in San Jose aims to produce solid-state battery cells for customer sampling and testing, thereby advancing the company's commercialization efforts in gigawatt-hour scale manufacturing and enhancing market confidence.
- Technical Price Analysis: The stock is currently trading 5.9% below its 20-day simple moving average and 27% below its 100-day moving average, indicating a bearish short-term trend; however, shares have increased by 69.06% over the past 12 months, suggesting potential for recovery as they approach 52-week highs.
- Upcoming Earnings Report: QuantumScape is set to report earnings on February 11, 2026, with an expected loss of 17 cents per share, an improvement from a loss of 22 cents year-over-year, indicating gradual financial performance enhancement.
- Analyst Ratings and Targets: The stock carries a Hold rating with an average price target of $7.82, with Morgan Stanley initiating coverage at Equal-Weight with a target of $12.00, while HSBC downgraded to Reduce with a target of $10.50, reflecting mixed market sentiment regarding the company's outlook.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Electric Vehicle Industry Faces Battery Challenges
- Market Growth Potential: According to Benchmark Mineral Intelligence, global EV sales grew by 20% last year, indicating resilience in the industry and solid growth opportunities for investors, despite weakness in the U.S. market.
- Intensifying Battery Competition: QuantumScape is developing solid-state lithium batteries expected to begin large-scale production by 2027; however, with competitors like BYD, Toyota, and Geely accelerating their own solid-state battery developments, QuantumScape faces increasing market competition.
- Technological Advancements and Market Demand: BYD's solid-state battery tests show a driving range of 900 miles, and its larger scale and resource advantages position it to rapidly expand production once the technology is perfected, posing a threat to QuantumScape's market outlook.
- Investor Considerations: Despite QuantumScape's innovative battery technology, its underfunded status and years away from profitability may lead investors to favor other stocks with greater growth potential, diminishing its standing in the investment community.
See More
Intensifying EV Market Competition Poses Challenges for QuantumScape
- EV Sales Growth: According to Benchmark Mineral Intelligence, global electric vehicle sales increased by 20% last year, highlighting the strong growth potential of the market and attracting investor interest.
- Solid-State Battery Progress: QuantumScape has been developing solid-state lithium batteries since 2010, and although it is currently only shipping prototypes to its partner PowerCo, it is expected to begin large-scale commercial production by 2027, potentially becoming a market pioneer if successful.
- Rising Competitors: However, competitors like BYD, Toyota, and Geely are also actively developing solid-state batteries, with BYD's battery capable of achieving 900 miles of range, indicating a stronger production capacity once the technology matures, which could capture market share.
- Investor Risk Awareness: Despite QuantumScape's correct vision, as an underfunded $5 billion company, it faces pressure from larger rivals, making it unlikely to be a growth stock worth investing in in the short term, suggesting investors should keep it on their long-term watch list.
See More
QuantumScape's Solid-State Battery Prospects Analyzed
- Technological Edge: QuantumScape's QSE-5 battery boasts an energy density of 844 Wh/L and can charge from 10% to 80% in just 12.2 minutes, showcasing a significant technological advantage over traditional lithium-ion batteries, which typically have an energy density of 300-700 Wh/L and require 20 minutes to an hour for charging, potentially revolutionizing the EV battery market.
- Commercialization Challenges: Although QuantumScape initially aimed to commercialize its batteries in 2024, it has postponed this target to the end of 2026 due to technical and manufacturing hurdles, indicating difficulties in achieving scalable production that may affect investor confidence.
- Financial Outlook: QuantumScape is projected to generate $5 million in revenue in 2026 while facing a net loss of $390 million; however, its expanded partnership with Volkswagen has provided additional funding, extending its cash runway through 2029, which is crucial for its survival.
- Market Potential: According to Grand View Research, the solid-state battery market is expected to grow at a CAGR of 31.8% from 2026 to 2033, and if QuantumScape achieves $61 million in revenue in 2027 and maintains a 30% growth rate, it could reach $294 million in revenue by 2033, highlighting its long-term growth potential.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
QuantumScape Stock Rises Ahead of Earnings Report
- Production Milestone Boosts Sentiment: QuantumScape's inauguration of the Eagle Line facility in San Jose aims to produce solid-state battery cells for customer sampling and testing, thereby advancing the company's commercialization efforts in gigawatt-hour scale manufacturing and enhancing market confidence.
- Technical Price Analysis: The stock is currently trading 5.9% below its 20-day simple moving average and 27% below its 100-day moving average, indicating a bearish short-term trend; however, shares have increased by 69.06% over the past 12 months, suggesting potential for recovery as they approach 52-week highs.
- Upcoming Earnings Report: QuantumScape is set to report earnings on February 11, 2026, with an expected loss of 17 cents per share, an improvement from a loss of 22 cents year-over-year, indicating gradual financial performance enhancement.
- Analyst Ratings and Targets: The stock carries a Hold rating with an average price target of $7.82, with Morgan Stanley initiating coverage at Equal-Weight with a target of $12.00, while HSBC downgraded to Reduce with a target of $10.50, reflecting mixed market sentiment regarding the company's outlook.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Electric Vehicle Industry Faces Battery Challenges
- Market Growth Potential: According to Benchmark Mineral Intelligence, global EV sales grew by 20% last year, indicating resilience in the industry and solid growth opportunities for investors, despite weakness in the U.S. market.
- Intensifying Battery Competition: QuantumScape is developing solid-state lithium batteries expected to begin large-scale production by 2027; however, with competitors like BYD, Toyota, and Geely accelerating their own solid-state battery developments, QuantumScape faces increasing market competition.
- Technological Advancements and Market Demand: BYD's solid-state battery tests show a driving range of 900 miles, and its larger scale and resource advantages position it to rapidly expand production once the technology is perfected, posing a threat to QuantumScape's market outlook.
- Investor Considerations: Despite QuantumScape's innovative battery technology, its underfunded status and years away from profitability may lead investors to favor other stocks with greater growth potential, diminishing its standing in the investment community.
See More
Intensifying EV Market Competition Poses Challenges for QuantumScape
- EV Sales Growth: According to Benchmark Mineral Intelligence, global electric vehicle sales increased by 20% last year, highlighting the strong growth potential of the market and attracting investor interest.
- Solid-State Battery Progress: QuantumScape has been developing solid-state lithium batteries since 2010, and although it is currently only shipping prototypes to its partner PowerCo, it is expected to begin large-scale commercial production by 2027, potentially becoming a market pioneer if successful.
- Rising Competitors: However, competitors like BYD, Toyota, and Geely are also actively developing solid-state batteries, with BYD's battery capable of achieving 900 miles of range, indicating a stronger production capacity once the technology matures, which could capture market share.
- Investor Risk Awareness: Despite QuantumScape's correct vision, as an underfunded $5 billion company, it faces pressure from larger rivals, making it unlikely to be a growth stock worth investing in in the short term, suggesting investors should keep it on their long-term watch list.
See More
