Why QuantumScape (QS) Is Up 19.0% After Live EV Test of Solid-State Battery Technology

• On September 8, 2025, PowerCo SE, Volkswagen Group's battery company, and QuantumScape unveiled the world's first live demonstration of solid-state lithium-metal batteries powering an electric vehicle at IAA Mobility in Munich, with a Ducati motorcycle featuring QSE-5 battery cells produced using the QS Cobra process.
• This premiere moves QuantumScape's anode-free solid-state battery from laboratory innovation to practical vehicle application, highlighting meaningful progress toward EV industry goals for higher energy density and faster charging.
• We'll explore how QuantumScape's breakthrough in battery performance metrics could reshape perceptions of its growth outlook and technology roadmap.

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What Is QuantumScape's Investment Narrative?

To be a QuantumScape shareholder, belief in the company hinges on the commercial potential of its solid-state battery breakthrough, its ability to scale production, and turning technical milestones into real-world adoption. The recent live demonstration with PowerCo SE and Ducati marks a turning point, shifting a long-promised technology into working vehicle form. This event could provide near-term momentum by validating manufacturing progress and boosting confidence with partners. However, the core risks, scaling to mass production, achieving meaningful revenue, and closing the profitability gap, remain central. Although QuantumScape’s losses are narrowing year over year, it is still unprofitable and not expected to achieve profitability in the next three years, according to pre-event analysis. While this milestone helps mitigate some technology risk and could improve the company's negotiating position in strategic collaborations, share price volatility and the premium to book value reflect ongoing market uncertainty and execution risk. If this demonstration spurs further commercial agreements or supply deals, it could alter the conversation around revenue growth catalysts, but that potential is not fully priced in ahead of concrete orders.

On the other hand, the risks from prolonged losses and volatility are factors investors should not ignore.

QuantumScape's shares have been on the rise but are still potentially undervalued by 40%. Find out what it's worth.

Exploring Other Perspectives

Twenty-eight members of the Simply Wall St Community place fair value for QuantumScape anywhere from US$2.50 to US$25 per share. While technical progress has drawn investor attention, the continued absence of meaningful revenue highlights the divergent outlooks and underlines how future milestones might shift market opinion. If you want a wide spectrum of views, these opinions are worth a look.

Explore 28 other fair value estimates on QuantumScape - why the stock might be worth over 2x more than 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 4 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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