QS Stock Alert: QuantumScape Shares New Details on Commercial Timeline

  • QuantumScape (QS) stock is rising slightly after QS reported that “most” of its battery cells had “performed very well” in tests.
  • The battery maker reiterated that it has enough cash to last until the second half of 2025.
  • It unveiled information about its first commercial product.
QS stock - QS Stock Alert: QuantumScape Shares New Details on Commercial Timeline

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QuantumScape (NYSE:QS) stock is rising slightly after the pre-revenue electric vehicle battery maker reported that most of its battery cells had “performed very well” in tests. QS also provided information about the specifications of its first upcoming commercial product, reiterated that it has enough cash to last until the second half of 2025, and disclosed the next step that it plans to take as it moves toward commercialization.

More Information about QuantumScape’s Tests

The company reported that one automaker had completed its testing of QuantumScape’s battery cell prototypes. It reported that “most cells [had] performed very well, meeting performance targets on fast charge and generally showing good cycling capacity retention and high Coulombic efficiency.”  The company added, however, that it has to enhance the batteries’ “reliability.” QS stated that it had identified means of accomplishing the latter goal and has begun implementing “a number of initiatives” to help it do so.

QS has tested batteries with a larger cathode of 5 mAh/cm² versus its previous cathodes, which were about 3 mAh/cm². With the larger cathodes, the company stated that its batteries had an energy density of over 5 mA /cm². According to QuantumScape, that’s a higher density than “other lithium-metal, anode-free cells… capable of cycling at these current densities for over 800 cycles at room temperature.”

The Upcoming Product

QuantumScape has plans to release a battery with “a 24-layer solid-state cell [and] a capacity of 5 Amp-hours. It noted that the capacity of widely used EV batteries ranges between 4.5 AH and 5 AH.

QS says this product will enable it to reach commercialization as quickly as possible. It added that its next step will be to “begin finalizing equipment designs for upgraded higher-volume production on our consolidated QS-0 pre-pilot line.”

My Bearish View on QS Stock

In a column published on April 25, I called QS stock a sell because of my belief that it would be “many years” before the company generates revenue, while it appears to be significantly trailing two of its competitors chronologically.

Nothing in the information that QuantumScape released today changes my view on QS stock.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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