QuantumScape (QS) is surging today after its Q3 earnings report brought a key update. While the electric vehicle (EV) battery startup reported overall mixed results, it also revealed that it has reached a key milestone with its B-sample cell. This is its first commercial product, and QuantumScape has finally begun low-volume production. This could mark the start of a new chapter for the stock.
What’s Going On with QuantumScape Stock Today?
As of this writing, QuantumScape stock is up 32%, and its current trajectory suggests it has further to run. This follows a week of mostly stagnant trading, during which QS stock saw little to no momentum. The company hasn’t reported any growth-driving catalysts in months, and when it has risen, trading has been volatile.
However, today’s performance, despite mixed earnings results, shows that the market is highly optimistic about QuantumScape’s future as it begins B-sample cell production. One of the factors working against QuantumScape since its IPO has been the lack of physical products. Now, it has begun production on a device with the potential to significantly impact the EV battery industry.
What exactly is this new device driving QS stock up? According to an update published on the company’s webpage, “QuantumScape’s planned first commercial product, QSE-5, is a ~5 amp-hour cell designed to meet the requirements of automotive applications.” This comes at a time when the EV battery market is projected to expand at a CAGR of 15.5% between now and 2030.
Is QS Stock a Buy, Sell or Hold Right Now?
Up to now, Wall Street hasn’t been bullish on QuantumScape’s growth prospects. Analysts have a Hold consensus rating on QS stock, based on one Buy, four Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After shares rose 16% over the past year, the average QS price target of $6.67 represents a 0.76% change from the last price of $6.62.
QuantumScape is still facing an uphill battle after spending months battling volatile market conditions and mostly declining. However, this upgrade to its B-sample battery cell should reassure investors that the company is working hard on getting actual products to market. If this progress continues, QS stock will likely start to achieve sustainable growth as Wall Street begins to take it seriously.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
