QuantumScape (NYSE:QS) stock rallied nearly 7% yesterday and is up another 3% this morning. The gains came after a report asserted that the electric vehicle battery maker was teaming up with Porsche.
So what happened?
A German media outlet, Manager Magazin, stated that Porsche is partnering with QuantumScape. According to the reports, the German sports car maker is looking to incorporate the solid-state EV batteries that QuantumScape is developing into its upcoming EVs.
For investors, these reports likely make sense. German automaker Volkswagen (OTCMKTS:VWAGY) owns Porsche, and it has invested as much as $300 million in QuantumScape.
Porsche’s EV Progress and Plans
In 2020, Porsche introduced its first electric vehicle, the Taycan. The sports car maker is expected to launch a second EV, the Macan, soon, and its CEO recently said that “In 2025, half of all new Porsche sales are expected to come from the sale of electric vehicles.” Moreover, the CEO added that “In 2030, the share of all new vehicles with an all-electric drive should be more than 80 percent.”
And indicating that Porsche is really going all-in on EVs, Manager Magazin reported that the automaker is working on developing an electric version of its popular Porsche 911 sports car.
Gauging the Outlook of QS Stock
Assuming that Manager Magazin’s report is accurate, it appears that Volkswagen, which has been working with QuantumScape for about a decade, is impressed with its progress so far. And that, in turn, would certainly bode well for QS stock.
However, also noteworthy is that the battery maker has said that it’s aiming to integrate its products into vehicles by 2025. That means the company likely won’t generate meaningful revenue anytime soon.
That isn’t deterring bulls. InvestorPlace analyst Luke Lango recently wrote that QuantumScape is well-positioned to create “batteries that are cheaper, last longer, charge faster, and are overall a better solution than the Lithium-ion status quo.” He added that “QS stock … has Millionaire-Maker potential.”
On the date of publication, Larry Ramer 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.