One company that is acquiring a significant amount of interest today is QuantumScape (NYSE: QS). Shares of this solid-state battery maker have actually soared more than 7% at the time of creating, on unusually high quantity. For capitalists in QS stock, this relocation is a welcome reprieve from the or else unfavorable price action seen over the past year.
Without a doubt, over the past 12 months, shares of QS stock have quit virtually 60% of their value.
Much of the belief around solid-state batteries has actually changed significantly over the past year. Why? Well, investors seem lowering their expectations as to when this modern technology will be feasible. In other words, even advocates of the game-changing technology that QuantumScape concentrates on think that it might take time.
Accordingly, assumptions of future capital growth are increasingly being pushed out into further years, a truth that does not square well with rising rates of interest.
Where Do Experts Assume QS Stock Is Headed?
For recommendation, QS stock presently trades at $18.60.
– JPMorgan’s Jose Asumendi recently reiterated a “hold” rating on QS stock, with a rate target of $27 per share.
– Adam Jonas of Morgan Stanley additionally repeated an “equivalent weight” rating, lowering his rate target to $30 from $40 for QS stock.
– Finally, Baird expert George Gianarikas maintained a “hold” rating, with a $20 price target on this stock.
Why QuantumScape Stock Suddenly Jumped Monday Afternoon
QuantumScape (QS 6.88%) stock soared greater by as long as 12.8% Monday afternoon before regulating to close the session up by 6.8%. The sudden enter the stock rate can be attributed to a post released by German company regular monthly Supervisor Magazin that fueled speculation about a possible partnership between QuantumScape and a deluxe cars and truck manufacturer.
QuantumScape is building multilayer solid-state lithium steel battery cells that are apparently much better than the lithium-ion batteries that currently power most electrical automobiles (EVs) on numerous matters, consisting of power thickness, efficiency, billing rate, price, and also safety and security.
An individual using a smart phone while waiting to charge electrical vehicle.
Image resource: Getty Images.
According to the Supervisor Magazin post, Volkswagen’s (VWAGY 2.12%) deluxe brand name Porsche, best known for its 911 cars, is reportedly establishing an electric version of the 911 that could use solid-state batteries, and is dealing with QuantumScape to supply them.
Although neither QuantumScape nor Porsche have verified anything yet, investors were probably betting on this report proving real, given the business’s long-lasting partnership with Volkswagen.
In 2021, QuantumScape received an additional $100 million well worth of funding from Volkswagen after its battery cells satisfied the car manufacturer’s technical turning point requirements in lab tests. Both companies have additionally signed an arrangement to jointly create a solid-state battery pilot-line center.
QuantumScape doesn’t expect to begin commercial manufacturing of its batteries prior to 2024. Yet financiers have wagered large on the stock, and also the backing of Volkswagen creates an essential part of the investment thesis for the EV battery start-up.