QuantumScape (QS), a developer of next-generation solid-state lithium-metal batteries, is set to release its second-quarter 2025 financials after market close on Wednesday, July 23. Wall Street expects the company to post a net loss of $0.21 per share, lower than the loss of $0.25 in the year-ago quarter.
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At the same time, QS is not expected to report any meaningful revenue, as it remains in the pre-commercial stage. Still, investors will be paying close attention to any updates on battery testing, factory progress, and deals with carmakers. Any positive news in any of these areas could boost investor confidence.
Meanwhile, TipRanks’ AI stock analysis has assigned a Neutral rating to QuantumScape stock.
Recent News Ahead of Q2
Just last month, QuantumScape said it had started using a new process called Cobra in its battery separator production. This method is faster and takes up less space than the older one, making it more suitable for large-scale production in the future.
Following the news, William Blair analyst Jed Dorsheimer maintained a Market Perform rating on QuantumScape. He noted that while the Cobra update was a positive move, it was already expected by the market. He said he would like to see more meaningful updates, such as details about the company’s first customer and the cost of making each battery, before turning more positive on the stock.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 17.33% move in either direction.
Is QS Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on QuantumScape stock based on one Buy and four Holds assigned in the past three months. At $6.33, the average QS stock price target implies a 49.44% downside potential.
