HomeBusinessShould You Buy QuantumScape While It's Under $7.50?

Should You Buy QuantumScape While It’s Under $7.50?

Electric vehicles (EVs) aim to transform transportation. But like any breakthrough technology, EV batteries still have hurdles to overcome before EVs become widely adopted. Some common criticisms of electric cars relate to their long charging times and shorter driving range compared to gasoline-powered vehicles.

That’s true QuantumScape (NYSE:QS) comes in. The company is committed to developing batteries that overcome the obstacles faced by current lithium-ion batteries and make electric vehicles more attractive to consumers. Earlier this year, QuantumScape made headlines with excellent results during an endurance test of its battery. The company has also secured financing to expand its runway and recently reached a major milestone with the shipment of its sample B cells for further testing.

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QuantumScape is making progress, but the stock is 96% below its peak price four years ago and near an all-time low. While the low price may make it seem attractive, there are some things you should know if you’re considering picking up the stock today.

QuantumScape aims to revolutionize battery technology and address several barriers that have hindered the widespread adoption of electric vehicles. The advanced solid-state lithium metal batteries promise to make significant advances in several key areas: increased energy density, faster charging times and superior safety measures compared to traditional battery systems.

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The company had entered into a strategic partnership with Volkswagen. Earlier this year, Volkswagen’s battery division, PowerCo, tested QuantumScape’s solid-state batteries and reported great results, achieving 1,000 charging cycles, with the battery cells showing minimal signs of wear. This indicates that an electric vehicle equipped with their technology can potentially travel more than 500,000 kilometers without experiencing a noticeable decrease in range.

Image source: Getty Images.

Last month, shares of QuantumScape soared higher after it announced it would produce and ship low volumes of its B-sample cells. The company says this was its main target for 2024 and began shipping these cells to its automotive customers for extensive testing.

These tests by car manufacturers will take months. This is part of a three-step process involving A, B and C prototype cells undergoing internal and customer testing before commercial production of the product, QSE-5. Ultimately, the company wants to confirm that its technology allows electric cars to travel further, charge faster and operate more safely than the electric cars currently on the market.

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