QuantumScape (QS), a solid-state battery developer, saw its stock jump more than 20% after the company showed off its technology in a live test. Working with PowerCo, the battery unit of Volkswagen (VWAGY), QuantumScape powered a Ducati electric motorcycle during Volkswagen’s press event at the IAA Mobility show in Munich.
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This was the first time QuantumScape’s batteries were used in a real vehicle on stage. CEO Siva Sivaram said the moment proved the company had moved “from possibility to reality.” He added that teaming up with PowerCo and Ducati will help scale production of the new battery cells.
Solid-State Batteries Gain Attention
QuantumScape’s batteries use ceramic separators designed to make EV batteries safer, faster to charge, and longer lasting. These upgrades could ease range worries and make EVs more appealing to more drivers.
Until now, results had only been shown in labs, so the public demo gave investors more trust in the company’s progress.
Commercialization Still Ahead
QuantumScape is still at least a year away from large-scale production, and scaling solid-state batteries has proven difficult across the industry, with cost and durability as the main hurdles. Even so, the Ducati demo showed investors that the company is making real progress.
At the same time, competition in solid-state batteries is growing quickly, with both startups and global automakers racing to claim an edge. For now, QuantumScape’s live demonstration positions it as one of the players closest to turning next-generation battery technology into a commercial product.
Is QS Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on QuantumScape stock based on one Buy and three Holds assigned in the past three months. At $7.33, the average QS stock price target implies a 22.76% downside potential.
