Why QuantumScape Stock is rallying this week
Solid State Battery Technology Company Shares QuantumScape (NYSE: QS) have skyrocketed this week, extending the volatility the stock has experienced since the company started going public. Stocks were holding near all-time lows when investors received news that made them excited to own QuantumScape again. At the start of the last trading day of the week, QuantumScape stock was near its weekly high, up around 24%.
The stock market gains can be attributed to both company specific news as well as more macro trends this week. After a massive sale to start the week, the two S&P 500 and the Nasdaq Composite regained those losses as the week progressed. And news from a QuantumScape Securities and Exchange Commission filing last Friday helped stocks outperform markets solidly for the week. The company said it has signed a deal with a second automaker – and it’s one of the top ten in the world in terms of revenue.
Solid-state battery technology for electric vehicles has yet to be commercialized, but QuantumScape has made progress in its development. Volkswagen was an early investor in the company, and news of interest from a second major automaker lends more legitimacy to the technology in the eyes of investors.
QuantumScape believes it has a ceramic material that can be used as a solid-state separator in the battery cell to help overcome slow charge times and improve performance and fire safety compared to lithium-ion batteries. current. Earlier this year, the company announced that it had successfully built its first, four-layer, multi-layered battery cell, which confirmed that the technology is usable. In July, the company said it had successfully produced and started testing its first 10-layer battery cells. This is the level required to produce a commercially viable product.
This week’s news helps underpin the company’s results. Although not named, the latest automaker to sign up to work with QuantumScape has agreed to work with the company and evaluate prototypes of solid-state battery cells, according to the file. DRY.
QuantumScape said the company has already evaluated early versions of the battery cells and has also agreed to purchase capacity from the company’s pre-pilot production line plant, which is expected to begin production in 2023.
After Monday’s liquidation, many stocks, including those in the speculative electric vehicle sector, rebounded. QuantumScape was no exception, and had company specific news to help increase those earnings. It’s no surprise that stocks rebounded strongly from lows this week.
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