Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 13 May, 25 | QS | Speculative Buy | USD 4.28 | USD 4.6 | USD 4.8 | 5 days | 12.1% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.
Capital Efficiency: Capital expenditures in Q1 totaled $5.8 million, well within the company's full-year guidance of $45–$75 million, showing prudent cost management
Strong Liquidity: The company ended Q1 2025 with $860.3 million in liquidity, providing a stable financial runway into the second half of 2028
Revenue Absence: The company continues to operate without generating commercial revenue, relying heavily on cash reserves to fund development and expansion
High Operating Loss: The GAAP net loss for Q1 2025 was $114.4 million, reflecting significant ongoing costs associated with R&D and scaling operations
QuantumScape’s investment risk lies in its lack of commercial revenue and long development timelines, which make its business model highly sensitive to delays in technology validation, customer adoption, or large-scale manufacturing readiness
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 4.28 | 3.95 | 4.6 | 4.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Progress on Strategic Manufacturing Goals
QuantumScape's foremost operational goal for 2025 is the integration of the Cobra separator process into baseline production. The project is currently ahead of schedule, with all required processing equipment already installed and product qualification underway. The company anticipates incorporating Cobra into baseline operations by the second quarter of 2025. This advancement is expected to enable higher volumes of QSE-5 cells, positioning the company to meet the growing demands of its launch programs.
Capacity Expansion and Automation Enhancements
A second critical goal is the installation of high-throughput cell assembly equipment to complement the increased output from the Cobra process. QuantumScape is collaborating with engineers from PowerCo to automate key manufacturing stages, which is expected to both improve production efficiency and enhance the quality of QSE-5 samples. Orders have been placed for essential equipment, with upgrades to the baseline scheduled as the components are received.
Product Launch Preparations and Field Testing Readiness
The third annual objective is the shipment of QSE-5 B1 samples, which remains on schedule. These cells, enabled by the Cobra separator, will support the company’s launch program aimed at validating the QSE-5 platform’s real-world performance. The B1 samples are specifically intended for field testing, which will commence in 2026, representing a crucial step toward commercial deployment.
Commercial Engagement with Strategic Partners
In terms of commercial partnerships, QuantumScape has deepened its collaboration with PowerCo, Volkswagen Group’s battery subsidiary. Key executives from Volkswagen and PowerCo recently visited the San Jose facility to review progress on joint development initiatives. In addition to PowerCo, the company is actively engaging with other automotive original equipment manufacturers (OEMs) and expanding a global network of suppliers, contract manufacturers, and technology partners.
Strategic Partnership with Murata Manufacturing
The company also announced a new phase of collaboration with Murata Manufacturing, a global leader in ceramic and electronic materials based in Japan. This partnership aims to accelerate the industrialization of QuantumScape’s solid-state battery technology by integrating Murata’s advanced ceramics capabilities with QuantumScape’s proprietary Cobra separator technology. This strategic alignment is intended to scale production while maintaining innovation velocity.
Financial Performance and Liquidity Position
QuantumScape incurred $5.8 million in capital expenditures in Q1 2025, mainly to support facility and equipment upgrades for QSE-5 production. The company reaffirmed its full-year capex guidance of $45–$75 million. GAAP operating expenses were $123.6 million, with a net loss of $114.4 million. Adjusted EBITDA loss stood at $64.6 million, within the expected range. As of March 31, the company reported $860.3 million in liquidity and reiterated that its cash runway extends into the second half of 2028, subject to further extension from potential customer or capital inflows.
Vision for Technological and Commercial Leadership
QuantumScape’s newly published Strategic Blueprint outlines its commercialization strategy and emphasizes the resilience of its licensing-focused business model in the face of geopolitical shifts. The roadmap builds on its lithium-metal solid-state platform with plans for future innovations that drive superior battery performance. Through collaborative partnerships and a robust balance sheet, the company aims to solidify its leadership in next-generation battery technology and generate long-term shareholder value.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Speculative Buy’ recommendation has been given on QuantumScape Corporation (NYSE: QS) at the closing market price of USD 4.28, as on May 12, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Parts
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| QS Quantumscape Corp |
-0.005 0.13% | 3.98 | - | - | - | 2.41 | -7.2191 | |
| DNZOY Denso Corp ADR |
-0.02 0.15% | 13.29 | 18.99 | 12.36 | 0.0067 | 1.23 | 0.0064 | 0.05 |
| DNZOF DENSO Corporation |
- -% | 14.39 | 19.14 | 12.89 | 0.0064 | 1.28 | 0.0065 | 0.05 |
| APTV Aptiv PLC |
0.18 0.27% | 67.67 | 11.14 | 14.56 | 1.24 | 2.27 | 1.50 | 11.76 |
| BRDCF Bridgestone Corporation |
- -% | 42.50 | 11.70 | 11.93 | 0.0056 | 0.97 | 0.84 | 4.33 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are 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 levels is May 12,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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