Last week, solid-state battery producer QuantumScape (NYSE:QS) announced that it had nailed all its goals for 2021. The announcement comes after the company released its latest testing results for its 10-layer batteries, which can effectively run a whopping 800 cycles. Moreover, it is now focused on its 2022 and 2023 objectives, which involve increasing cell consistency, quality, layer counts, and developing its production line. Hence, QS stock appears to be a game-changer in the electric vehicle space for the long haul despite the risk.
QuantumScape is by far the favorite to achieve the holy grail of successful EV batteries. Solid-state battery technology seemed like a distant dream until QuantumScape entered the fray and switched on the afterburners. Moreover, its long-standing partnership with automotive giant Volkswagen (OTCMKTS:VLKAF) gives it the support it needs to see its projects past the finish line. QuantumScape has over 200 patents and multiple applications in process. Additionally, the EV battery maker has achieved its goals ahead of schedule, strengthening the belief in its capabilities.
Impressive Test Results
QuantumScape’s recent test results are highly encouraging and a testament to the strength of its product. A third-party lab has also assessed the battery and found it to be highly promising. Moreover, it is plausible to assume that more third-party labs will be jumping in on the action to conduct more research. The tests performed on the cells involve a comprehensive cycle-life test which shows how the cell chemistry holds up under several commercially relevant conditions.
The tests show that the cells have an incredible 100% depth of discharge and a life of 800 cycles. Moreover, the batteries were operational past 240,000 miles, which is an amazing feat. This development will attract multiple original equipment manufacturers in addition to Volkswagen in strengthening relationships with the enterprise. Overall, these developments are highly encouraging and deepen investor interest in future battery developments.
With all 2021 milestones being hit, investors will now be looking ahead towards implementing cells in the initial stages. This will be the next major growth driver for the company, potentially boosting QS stock to new heights. Future battery tests will be critical in moving the stock and the company’s fate. As it stands, Quantumscape appears to be on track to commercialize its solid-state batteries by 2024.
How Risky Is QuantumScape Stock?
Any company in the pre-revenue stage is a risky proposition. With QuantumScape, there will be no material revenues, at least for the next three years. On top of that, the company is looking to commercialize a technology where several companies have failed in the past.
However, the company has delivered on all its milestones and continues to prove its naysayers wrong. Moreover, we have seen how the larger corporations and the government have been pushing for renewable energy.
QS stock has been relatively volatile, but its stellar test results continue to push the stock higher. QuantumScape can become the leader in the production of solid-state batteries, and its lead continues to increase with every passing day. Additionally, more third-party tests and innovations will continue to push the company and QS stock forward.
Final Word On QS Stock
QuantumScape’s batteries aren’t commercially viable yet, but it’s not smoke and mirrors either. The company has been working hard on developing its technology for several years and already has the support of two automakers to test its prototypes. Even if the competition rises in its niche, QuantumScape has established its position as a front-runner in the production of solid-state batteries.
On the date of publication, Muslim Farooque 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
