Is QuantumScape Stock a Buy Now?
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The Motley Fool

Is QuantumScape Stock a Buy Now?

July 27, 2025
05:23 AM
4 min read
AI Enhanced
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Key Takeaways

This EV materials company has had plenty of positive prospects for a long time.

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4 min read

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investment

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Published

July 27, 2025

05:23 AM

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The Motley Fool

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financeinvestmentfinancialtechnologyenergymarket cyclesseasonal analysismarket

Nevertheless, 66%) is leading the charge to revolutionize energy storage with its innovative solid-state lithium-metal battery nology for electric vehicles and other applications, amid market uncertainty

Its cutting-edge battery nology mises higher energy density and faster charging times, while also significantly imving safety compared to traditional lithium-ion batteries

On the other hand, The company has made headlines recently as its battery nology gresses, and the stock has surged 265% from its 52-week low

Here's what investors need to know QuantumScape's investment spects and what to expect from the company over the next several years

Moreover, Image source: Getty Images

QuantumScape's battery nology ambitions Last year, QuantumScape partnered with PowerCo, the battery manufacturing arm of the Volkswagen Group

On the other hand, Volkswagen has been a significant investor in QuantumScape since 2012, committing around $380 million, and is the company's largest holder, amid market uncertainty

Additionally, QuantumScape's collaboration with PowerCo looks to advance its QSE-5 nology platform, with the goal of scaling up duction at PowerCo's facilities, given the current landscape

At the same time, PowerCo is the "anchor customer" in QuantumScape's expanding nology ecosystem, as the company aims to develop a capital-light licensing model and expand its partnerships with customers worldwide, in today's financial world

Instead of incurring heavy manufacturing investments, QuantumScape would license its nology to these partners, reducing its exposure to manufacturing risks and capital demands

QuantumScape is focused on broadening its range of potential licensing agreements with other automotive manufacturers

It also aims to strengthen its relationships with nology partners and key players across the battery value chain

This recent news sent the stock soaring One of QuantumScape's primary goals coming into 2025 was to bring the Cobra separator cess into baseline duction (fascinating analysis), considering recent developments

Cobra represents a "step-change innovation in ceramics cessing" designed to enable a significant imvement in separator ductivity (fascinating analysis), given current economic conditions

This new cess offers a 25 times imvement in heat treatment speed and requires only a fraction of the physical space per film start (compared to its prior-generation Raptor cess)

In June, the company announced that its Cobra separator cess had reached baseline duction, a key step toward commercializing its batteries

This leads to the conclusion that successful baselining of Cobra is crucial for enabling higher-volume B1 sample duction of their QSE-5 cells, which will be used in a launch gram designed to showcase them, with field testing scheduled to commence in 2026

Since the announcement, the stock has surged 190%

Be mindful of the timeline and its finances One thing investors should be aware of regarding QuantumScape is that it is a company in its early growth stage, given current economic conditions

The company has not generated any revenue to date and continues to incur losses as it spends heavily on re and development

Meanwhile, QuantumScape posted an operating loss of $123

Nevertheless, 6 million in the first quarter and expects to incur significant expenses and losses into the future

Nevertheless, Capital expenditures in the first quarter of 2025 were $5. 8 million, primarily supporting equipment and facilities for higher-volume QSE-5 B1 sample duction using the Cobra separator cess

What the re reveals is company's full-year capital expenditure guidance for 2025 is between $45 million and $75 million

QuantumScape reported $860. 3 million in cash and equivalents at the end of the first quarter and anticipates this cash runway is enough to extend into 2028

Additionally, This runway has expanded since it announced its licensing agreement with PowerCo, which is expected to lower costs and capital requirements compared to previous joint venture arrangements (which is quite significant)

However, Is QuantumScape a buy today

I'm excited the potential of QuantumScape's ground battery nology, which has the potential to transform energy storage in the future

However, the company is still in the early stages of development and testing, and will continue to incur losses as it brings its vision to life

On the other hand, In contrast, Analysts have noted that we should not expect meaningful revenue from QuantumScape until 2027, with jections of $51. 6 million that year, ed by a significant leap to $265 million in 2028, amid market uncertainty

Nevertheless, Until then, we're looking at a story-driven stock that will attract attention but may not offer as much upside from here, especially given its recent surge.