Solid Power (SLDP) Valuation in Focus After Breakthroughs With BMW and Ford Partnerships

Solid Power (SLDP) is getting attention after recent breakthroughs in its solid-state battery technology, including successful integration of its battery cells into BMW’s i7 test vehicles and expanded partnerships with BMW and Ford.

See our latest analysis for Solid Power.

Solid Power’s share price has been on a tear, recently hitting a 52-week high of $6.30 due to upbeat news around technology breakthroughs, real-world battery testing, and deepening partnerships with BMW and Ford. This wave of momentum is hard to miss, with a year-to-date share price return of over 200% and a staggering total shareholder return of 408% for the past year. This underlines just how much enthusiasm is building around the company’s growth prospects.

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With the stock hitting new highs and hype running strong, the big question now is whether Solid Power’s shares have more room to run, or if all this future growth is already being fully priced in by the market.

Most Popular Narrative: 57% Overvalued

The most popular narrative says Solid Power’s fair value is $4.00 per share, while the last close was $6.30, signaling a significant gap between sentiment and analyst expectations. With the stock soaring, the narrative offers a grounded alternate view of where fundamentals and hype might be diverging.

The rapid pace of investment and milestones achieved, such as partnerships with BMW and SK On, appear to be leading investors to assume accelerated revenue growth and early market dominance. However, there is a risk that large-scale commercial adoption and customer diversification may not materialize as quickly as expected, potentially leading to future revenue shortfalls.

Read the complete narrative.

Curious what revenue leaps, margin forecasts, and production milestones went into this sky-high valuation? The heart of this narrative weighs ambitious partnerships against a fast-paced growth story, driven by bold projections. Want to know which assumptions underpin this dramatic price target? There is more under the hood. Find out in the full breakdown.

Result: Fair Value of $4.00 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a major OEM partnership that accelerates mass adoption or breakthroughs in Solid Power’s electrolyte production could quickly alter the current valuation outlook.

Find out about the key risks to this Solid Power narrative.

Build Your Own Solid Power Narrative

If you see things differently or want to dig into the numbers yourself, you can build your own narrative in just a few minutes. Do it your way.

A great starting point for your Solid Power research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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