QuantumScape (QS) Is Down 13.9% After New Auto Deals And Insider Sale - What's Changed

• QuantumScape recently completed installation of key equipment for higher-volume QSE-5 cell production on its Eagle Line pilot line in San Jose and, over 2025, signed joint development and licensing agreements with major automotive and industrial partners including a new top-10 global automaker, Volkswagen’s PowerCo, Murata Manufacturing, and Corning.
• Alongside these partnerships and manufacturing advances, QuantumScape reached an important commercialization step by beginning customer billings to Volkswagen and saw a large insider share sale by director Dipender Saluja of approximately US$36.94 million in common stock during December 2025.
• We’ll now examine how QuantumScape’s expanded automotive joint development agreements shape the company’s investment narrative amid recent share price declines.

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What Is QuantumScape's Investment Narrative?

To own QuantumScape today, you really have to believe its solid-state technology can move from lab success to reliable, scaled manufacturing before cash and investor patience run thin. The latest news on the Eagle Line equipment installation and expanded joint development and licensing deals with major automakers and industrial partners reinforces the core catalyst: getting QSE-5 cells into customers’ hands at higher volumes and starting to generate meaningful commercial revenue. Beginning billings to Volkswagen is a step in that direction, but with zero material revenue so far and continued annual losses above US$400 million, the financial risk remains front and center. The sizeable insider sale by director Dipender Saluja adds another layer of scrutiny at a time when the share price has pulled back sharply after a very large year-to-date rally.

However, one risk in particular stands out that shareholders should not overlook. Despite retreating, QuantumScape's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Thirty two members of the Simply Wall St Community place QuantumScape’s fair value anywhere from US$2.50 to US$25, underscoring how far apart opinions are. When you contrast that with the company’s continued losses and heavy reliance on successful scale up of QSE-5 production, it underlines why some investors see a long runway while others focus on execution risk.

Explore 32 other fair value estimates on QuantumScape - why the stock might be worth less than half the current price!

Build Your Own QuantumScape Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your QuantumScape research is our analysis highlighting 3 key rewards and 5 important warning signs that could impact your investment decision.
• Our free QuantumScape research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate QuantumScape's overall financial health at a glance.

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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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