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QS Stock: 2 Big Reasons QuantumScape Is Powering Higher on Friday

Today, investors in QuantumScape (NYSE:QS) are seeing some positive momentum materialize. Currently, shares of QS stock are up nearly 14% on impressive volume. This move is a continuation of some rather strong momentum over the past month.

A sign for QuantumScape (QS).

Source: Michael Vi / Shutterstock.com

Indeed, the fact that QS stock has continued to make new monthly highs is encouraging for investors. This is a stock that has been on the receiving end of a pummeling in the market since the end of 2020. Shares of QuantumScape remain approximately 80% below their 52-week high, driven by a turnaround in the momentum for this solid-state battery producer.

Solid-state battery technology is what has often been viewed as the holy grail in the battery manufacturing space. The ultimate science behind these battery prototypes put forward by QuantumScape has been called into question by short-sellers. However, QuantumScape continues to make the case that it’s on track to deliver what it promises sooner than expected.

Let’s dive into the company-specific news driving QuantumScape higher today.

QS Stock Surges on a Number of Catalysts

There are actually a few catalysts that have been propelling QS stock higher in recent days.

First, the company reported its third-quarter financial results on Wednesday. As per a shareholder letter, a business update was provided by CEO Jagdeep Singh. Additionally, third-party independent lab results were provided to back up the company’s solid-state single-layer sells. An update on the move to multi-layer cells was provided as well.

All in all, it appears the market likes what it sees. This independent lab report appears to be a step in the right direction. For investors dissuaded by the recent turmoil caused by short-seller concerns, such independent reports can do wonders to shift the narrative.

That said, QuantumScape does still appear to be a ways out from actual production. The company’s unlikely to report any meaningful earnings for some time. Business updates are great, and it appears the market likes what it sees. However, for investors looking at QS stock, this appears to be more of a long-term hold, than a trade right now.

On the date of publication, Chris MacDonald 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.

Article printed from InvestorPlace Media, https://investorplace.com/2021/10/qs-stock-2-big-reasons-quantumscape-is-powering-higher-on-friday/.

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