QuantumScape Stock Analysis
QuantumScape researches solid-state lithium metal batteries for electric cars. It formed a joint venture with VW to produce solid-state battery cells for, initially the VW manufacturers and ultimately, other car manufacturers. From early 2021 to recently, QS experienced a massive correction in its stock price due to a lawsuit led by investors who purchased the stock between November 2020 and December 2020, alleging the executives of the corporation delivered false statements that overstated QS's purported success related to its solid-state battery power, battery life, and energy density, along with the corporation's ability to scale its technology to the multi-layer cell necessary to power electric vehicles. From July 2021 to early November 2021, the stock price has been consolidating as the corporation battles a lawsuit while continuing its operations. As the EV industry gains more traction, QS is expected to benefit from the emerging industry, especially since it is backed by several corporations and investors.
Recently, QS's single-layer lithium-metal battery cells underwent several tests which it passed successfully. The battery is approximately equivalent to 24,000 miles driven for a 300-mile range vehicle, demonstrates the ability to perform over a vehicle's expected lifetime, and can operate at continuously high charge and discharge rates with minimal degradation (exactly what EV manufacturers would prefer). Additionally, QS announced that it has secured a 10-year lease for three new production facilities to expand its San Jose (location where it is headquartered) campus. The new space will be dedicated to manufacturing the solid-state lithium-ion batteries to scale up production after the development is complete. The new production may start as early as January/February 2022.
The recent surge in QS's stock price is also partly a result of President Biden's new 1Trillion infrastructure spending bill that has been officially approved because more infrastructure spending, especially in the EV industry, will provide a bullish momentum for almost all EV-related corporations (including QS).
From a technical perspective (using only price action), the stock's price is now breaking out of a multi-month consolidation with a break and retest, providing multiple opportunities for entry. As we approach key levels, it is important to wait for more corrections and bullish momentum. Fundamental catalysts will be necessary to break past monthly and weekly levels.
Recently, QS's single-layer lithium-metal battery cells underwent several tests which it passed successfully. The battery is approximately equivalent to 24,000 miles driven for a 300-mile range vehicle, demonstrates the ability to perform over a vehicle's expected lifetime, and can operate at continuously high charge and discharge rates with minimal degradation (exactly what EV manufacturers would prefer). Additionally, QS announced that it has secured a 10-year lease for three new production facilities to expand its San Jose (location where it is headquartered) campus. The new space will be dedicated to manufacturing the solid-state lithium-ion batteries to scale up production after the development is complete. The new production may start as early as January/February 2022.
The recent surge in QS's stock price is also partly a result of President Biden's new 1Trillion infrastructure spending bill that has been officially approved because more infrastructure spending, especially in the EV industry, will provide a bullish momentum for almost all EV-related corporations (including QS).
From a technical perspective (using only price action), the stock's price is now breaking out of a multi-month consolidation with a break and retest, providing multiple opportunities for entry. As we approach key levels, it is important to wait for more corrections and bullish momentum. Fundamental catalysts will be necessary to break past monthly and weekly levels.
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