QuantumScape (NYSE:QS) soared by more than 20% in trading on Thursday after the company announced that it has entered into a collaboration with Volkswagen’s (OTC:VWAGY) battery unit PowerCo. QuantumScape develops solid-state lithium metal batteries for electric cars.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Details of the QuantumScape and Volkswagen Partnership
As part of this partnership, Volkswagen’s PowerCo will receive a license to mass-produce battery cells using QuantumScape’s technology, replacing an earlier joint venture. With QuantumScape’s technology, PowerCo can manufacture batteries with an energy capacity of up to 40 GWh per year, with the option to expand to 80 GWh—enough for 1 million vehicles annually.
Solid-state batteries, which store more energy than current ones, are expected to speed up the adoption of electric vehicles (EVs). This is important for Volkswagen, which owns a 17% stake in QuantumScape, valued at $459 million, showing its commitment to advancing electric vehicle technology.
Meanwhile, Frank Blome, CEO of PowerCo, has resigned from QuantumScape’s board of directors because of his dual roles. A new successor will be announced soon.
Looking ahead, QuantumScape will share its Q2 results on July 24, offering insights into how its solid-state battery technology is progressing.
What Is the Future of QS Stock?
Only five analysts have covered QS stock over the past three months and they remain bearish about the stock, with a Moderate Sell consensus rating based on three Holds, and two Sells. Over the past year, QS stock has declined by more than 30%, and the average QS price target of $5.9 implies a downside potential of 13.8% from current levels.
