QS Stock: 11 Things to Know as Battery Play QuantumScape Rallies

Less than two weeks after announcing record advancements in solid-state battery technology, QuantumScape (NYSE:QS) is once again on the move. This time it appears that a second round of interest in its battery tech, coupled with a rise in electric vehicle equities, is boosting QS stock. So what do investors need to know now?

The headquarters of QuantumScape (KCAC) in San Jose, California.

Source: Tada Images / Shutterstock.com

To start, investors should remember exactly what QuantumScape represents. The company very recently came public via SPAC Kensington Capital, and it has been off to a hot start. In fact, earlier in December, QuantumScape made waves when it shared info on its solid-state battery tech. Essentially, the company wants to transform the EV industry through its new batteries.

And, once again, QS stock is rising higher as a result. With that in mind, here are 11 things to know:

  • QuantumScape fundamentally believes that solid-state batteries will improve the world of electric vehicles.
  • These solid-state batteries address issues of charging time and driving range.
  • They also can make EV batteries safer, removing concerns that batteries could short-circuit and catch fire while in use.
  • With this in mind, QuantumScape announced data on its batteries on Dec. 8.
  • In the report, the company said its solid-state batteries can reach an 80% charge in 15 minutes.
  • This is significantly faster than other batteries on the market, which reach an 80% charge in 4o minutes on average.
  • QuantumScape CEO Jagdeep Singh believes these batteries will greatly boost EV adoption.
  • Why? Well, consumers will appreciate the longer driving ranges, short charging times and overall safer experience.
  • Additionally, solid-state batteries could lower the overall costs of vehicle ownership.
  • And lastly, solid-state batteries will be able to power a wider range of vehicles, perhaps enabling electric aviation.
  • Today, QuantumScape also shared that its batteries charge twice as fast as a Model 3.

The Bottom Line on QS Stock

There is no denying that QuantumScape and QS stock have investors all excited about the future of EV batteries. And this makes a lot of sense. QuantumScape believes it can transform an already hot industry, ushering in even more growth potential for sector bulls. Additionally, QuantumScape looks to be the first company to share such battery advancements, earning it even more praise.

Although it is not entirely clear why QS stock is on the move today, investors should still pay attention. Because of its batteries are able to charge twice as fast as a Model 3 power pack from Tesla (NASDAQ:TSLA), it looks like QuantumScape will enjoy nice investor support. We are also seeing a bit of a recovery store for electric vehicle stocks, after many popular names have faced pressure in recent days. This broader catalyst too could be helping QuantumScape.

So what should investors do here? Many industry experts have come out in support of QuantumScape. However, critics have brought up a fair point. QuantumScape batteries may be able to charge faster than Tesla vehicles, but those batteries are not yet in production. Although the company hopes to start in 2024 or 2025, that story is a few years in the making.

Keep a close eye on QS stock and wait for more company news.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com. 

Article printed from InvestorPlace Media, https://investorplace.com/2020/12/qs-stock-11-things-to-know-as-battery-play-quantumscape-rallies/.

©2023 InvestorPlace Media, LLC