As the adoption of electric vehicles (EV) moves forward, one need continues to be on the minds of consumers: more range per charge. QuantumScape (NYSE:QS) seeks to solve that problem with its solid-state batteries (SSBs).
SSBs differ from the traditional lithium-ion batteries used in most EVs. For one, they do not contain flammable liquids, which pose a major safety hazard. Further, SSBs can hold more power and charge more efficiently. They are also applicable to more than just the EV market. Experts predict that stationary energy storage installations will grow by 2,000% between 2020 and 2030, representing a $385 billion total addressable market. That’s a massive “global market opportunity” for QuantumScape.
Still, the company has yet to release a single battery to the markets. Meanwhile, investors are growing impatient with QS stock. Back in December 2020, shares traded for more than $110. Today, the price is below $10 per share.
In late 2020, QuantumScape CEO Jagdeep Singh called for the release of the company’s battery “by roughly the middle of the decade.” Singh claims that the battery will provide an EV with 80% more range when compared to a lithium-ion battery. The battery will also last hundreds of thousands of miles in several temperature ranges.
QS stock has been hit hard due to the current macroeconomic environment and the company’s lack of a product. However, QuantumScape still boasts several large and reputable investors.
5 Investors Betting Big on QS Stock
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During the second quarter, 323 funds reported owning QS stock. That’s the same amount of funds which held QS in Q1. However, there seems to uncertainty around the company, as the institutional put/call ratio now sits at 1.31. This is up from 1.1 during the previous quarter and means that institutions own more put options against QS than call options.
With that in mind, let’s take a look at the top five shareholders.
- Volkswagen Group of America Investments: 68.23 million shares. This stake is accurate as of Q1 2021.
- Khosla Ventures: 35.44 million shares. Khosla’s stake is accurate as of Q4 2020.
- Jagdeep Singh, CEO: 32.60 million shares. Singh’s stake is accurate as of Q4 2020.
- Vanguard: 18.37 million shares. Vanguard purchased 254,852 shares during Q2.
- Timothy Holme, CTO and co-founder: 15.22 million shares. Holme’s position is accurate as of Q4 2020.
On the date of publication, Eddie Pan did not hold (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.
