The race for electric vehicle (EV) dominance is becoming more and more heated with each passing day. Where before it looked like Tesla (NASDAQ:TSLA) would be the crown-ruler of battery-powered vehicles, we now have new players stepping into the arena in the form of Lucid Motors (NASDAQ:LCID) and others. And even then, legacy companies are pivoting to keep up with the times, like Ford (NYSE:F) and Volkswagen (OTCMKTS:VWAGY). One company who is winning from these companies’ switches from combustion-engine vehicles is QuantumScape (NYSE:QS), and QS stock is a popular bet right now as a result.
Conversation about the electric vehicle industry, and who investors should be betting on, is heating up. And there’s no better indicator for this than President Joe Biden’s EV-centric executive order, signed at a meeting of major automakers at the White House. The president is pushing companies to ensure 50% of their production is in electric vehicles by 2030.
With Tesla and Lucid representing the largest and most hyped EV companies, legacy brands have a lot of catching up to do. One of those taking the greatest measures to compete is Volkswagen, and it’s doing that through its QuantumScape partnership.
QS Stock Gets a Boost From Increasing EV Discussion, VW Partnership
QuantumScape is a company that researches lithium batteries, particularly for use in electric vehicles. It boasts the backing of Bill Gates, and it recently secured a partnership with Volkswagen. This collaboration will be crucial to Volkswagen’s pivot to a larger fleet of EVs.
According to the Wall Street Journal, the company is not only looking to beat its storied peers; rather, the company wants to compete directly with Tesla to become the flagship electric car brand. Of course, producing its own batteries is a key to achieving this level of success.
QS stock looks like a serious EV play for investors, given this partnership. Additionally, QuantumScape’s CEO is updating investors on the company’s progress. According to the executive, Jagdeep Singh, the company is on track to have prototype batteries ready for Volkswagen in the next year. QuantumScape says its batteries charge exceedingly quickly and have a higher energy density than those currently on the market.
The general sentiment around the EV race is pushing more investors toward QS stock today. The stock is up 11% on today’s trading session thus far. Additionally, volume is already nearing the stock’s daily average just a few hours into trading.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
