QuantumScape Corporation

QuantumScape Corporation (NYSE: QS) is developing solid-state lithium-metal battery technology for electric vehicles (EVs) and other applications. The Company’s solid-state lithium-metal battery technology is designed to offer energy density, faster charging, and enhanced safety. Its battery cells have none of the host materials used in conventional anodes. The Company's cells are anode-free in that they are manufactured without anodes in a discharged state.

Recent Business and Financial Updates

• Quarterly Performance and Technological Milestones: On April 23, 2025, QuantumScape Corporation disclosed its Q1 2025 shareholder letter, highlighting significant progress in its operational and technological initiatives. The company has commenced shipping QSE-5 samples to a key prospective launch customer for a limited-volume, high-profile vehicle demonstration project, intended to validate its solid-state battery technology prior to broader market entry. Utilizing the Raptor separator process, these shipments meet stringent internal standards for yield and quality, while QuantumScape advances toward adopting the Cobra separator process, anticipated to markedly enhance production efficiency.
• Progress in Strategic Launch Initiatives and Innovations: QuantumScape is deepening its partnership with its launch customer, concentrating on the integration of modules and systems, including design validation and battery management system optimization, with plans for field testing in 2026. The Raptor process currently underpins sample shipments and development activities, achieving critical quality targets, while the Cobra process, a groundbreaking ceramics innovation, is poised to revolutionize separator productivity by a factor of ten. Additionally, the company has initiated the qualification of separator processing equipment to ensure seamless incorporation of the Cobra process into production by Q2 2025.
• 2025 Operational Objectives and Key Targets: QuantumScape has outlined its primary objectives for 2025, starting with the successful integration of the Cobra separator process into standard production, a goal that remains ahead of schedule with all required equipment installed and qualification advancing smoothly. The second objective focuses on deploying higher-volume cell assembly equipment in collaboration with PowerCo engineers to align with Cobra’s increased throughput, improving automation and quality for QSE-5 sample production to support PowerCo’s large-scale manufacturing ambitions. The third target, also on track, involves initiating shipments of QSE-5 B1 samples in 2025 for the launch program’s 2026 field testing phase, while the fourth goal emphasizes broadening commercial relationships, as detailed in the following section.
• Expansion of Commercial Partnerships and Industry Collaboration: QuantumScape has intensified its collaboration with PowerCo, Volkswagen Group’s battery division, hosting senior leaders such as Hans Dieter Pötsch and Frank Blome in San Jose to assess advancements in scaling the QSE-5 technology platform for gigawatt-hour production levels. The company is also expanding its global technology network by engaging additional automotive OEMs and forming strategic alliances with equipment vendors, materials suppliers, and technology partners, notably through a new partnership with Murata Manufacturing, a ceramics production leader, to accelerate the commercialization of its solid-state battery technology while continuing to prioritize innovation.
• Financial Position and Long-Term Growth Strategy: In Q1 2025, QuantumScape recorded capital expenditures of USD 5.8 million, primarily allocated to facilities and equipment for scaling QSE-5 B1 sample production, while maintaining its full-year capex forecast of USD 45 million to USD 75 million. Operating expenses totaled USD 123.6 million, resulting in a GAAP net loss of USD 114.4 million and an Adjusted EBITDA loss of USD 64.6 million, consistent with projections, with liquidity of USD 860.3 million providing a cash runway into late 2028. The company’s Strategic Blueprint underscores a sustainable business model, leveraging global partnerships, technological leadership, and an ecosystem approach with collaborators like Murata, positioning QuantumScape as a frontrunner in solid-state battery technology amid the rising prominence of electric powertrains in the automotive sector.

Technical Observation (on the daily chart):

The 14-day Relative Strength Index (RSI) is currently at 46.95, currently near mid-levels correcting from overbought levels, with the expectations of consolidation or upward momentum if the USD 3.80-USD 3.90 support holds. In addition, the current price below both the 50-day Simple Moving Averages (SMAs) and 200-day SMA, which may work as medium to long term resistance levels. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given QuantumScape Corporation (NYSE: QS) at the closing price of USD 3.97, as of May 22, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 22, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.