Shares of QuantumScape (QS 20.88%) were moving higher again today, even though there was no company-specific news out on the stock. Instead, a combination of excitement around the Uber–Lucid deal and momentum in the stock following last month’s announcement seemed to push it higher today.

As of 3:20 p.m. ET, the stock was up 17.9%.

Image source: Getty Images.

QuantumScape breaks out again

QuantumScape has surged after announcing a milestone achievement in its solid-state battery technology, going into production with its Cobra separator.

The stock has roughly tripled since then, and today it seemed to gain on the partnership announcement between Lucid and Uber, which could help fuel demand for new battery technology.

As for that deal, Uber will invest $300 million in Lucid in a robotaxi partnership that includes start-up Nuro’s autonomous vehicle technology.

Lucid is known for high-performance electric vehicles, but the business has struggled to scale, so Uber’s investment could give it a needed boost over the long term.

Meanwhile, QuantumScape’s solid-state batteries aren’t on the market yet, but Lucid has announced its intention of including solid-state batteries, which are denser than traditional lithium-ion batteries and therefore can charge faster and achieve a longer range, in its EVs. It’s unclear who Lucid would partner with on it.

What’s next for QuantumScape?

QuantumScape stock continues to trade in high volume, showing renewed interest in the stock, following last month’s announcement.

The next update for the company will come next week when it reports second-quarter earnings on July 23. While the numbers are secondary at this point, as QuantumScape is still a development-stage company, any commentary on Cobra or other news could propel the stock higher.

QuantumScape (QS 6.82%) is working to bring major enhancements to the performance of electric vehicle (EV) batteries. Investors hope its solid-state battery technology will become the new standard for EVs globally. As it continues to progress toward commercializing that tech, the stock price is reflecting the company’s recent accomplishments.

QuantumScape shares have soared again this week — up by 37.1% on the week as of noon ET Friday, according to data provided by S&P Global Market Intelligence. Over the last month, the stock has more than doubled.

Image source: QuantumScape.

QuantumScape is almost ready for EV battery cell production

QuantumScape gave investors a nice surprise recently — news that one of its most important 2025 goals has already been accomplished.

The company’s technology includes solid-state batteries with ceramic separators that should lead to safer, faster-charging, and more efficient batteries for EVs. Two weeks ago, QuantumScape announced the successful scale-up of its production capabilities. Its new generation Cobra process will speed up a key ceramic separator production step by approximately 25 times, using equipment that occupies a much smaller footprint than its previous Raptor production process.

That puts QuantumScape on track to launch field testing next year with its automaker customers. Those include global giant Volkswagen, which holds a 17% stake in the battery maker, according to its annual report.

QuantumScape’s solid-state batteries could provide EVs with significantly better travel range on a single charge than currently used batteries, which would help eliminate the range anxiety that has kept many potential EV buyers from considering them. More than 20% of all cars sold globally in 2024 were EVs, according to the International Energy Agency. While that amounted to sales of more than 17 million EVs, it also shows there is still massive growth potential in the market for such vehicles.

An investor update is coming in two weeks

That’s why investors have been getting so excited and piling into QuantumScape stock recently. The company will report its second-quarter results on July 23, at which time investors will get a more detailed overview of its progress and hear more about its next steps.

Some aren’t waiting for that update to own a piece of this promising EV technology company.

Shares of QuantumScape (QS 10.68%) jumped as much as 14% today with the stock holding onto a gain of 10.6% as of 3:35 p.m. ET. New Securities and Exchange Commission (SEC) filings might be what prompted the surge higher.

Last week, the solid-state battery technology company named a new chief operating officer (COO). Luca Fasoli is experienced in advanced memory and storage technologies from his time spent at technology companies Western Digital and Sandisk. Today’s move might be due to the SEC filing that shows Fasoli acquired more than 1.3 million QuantumScape shares in a transaction dated May 13.

Investors might have jumped the gun, though, if that’s why they also jumped into QuantumScape stock today.

Image source: Getty Images.

QuantumScape technology is still on track

That’s because the new COO’s shares were part of his compensation for the job in the form of restricted stock units (RSUs). The shares include a signing bonus as well as a new-hire grant. The SEC filing is still meaningful for investors. Only 25% of those shares have vested as of today. The balance will vest in small increments over the future quarterly periods as long as Fasoli remains employed with QuantumScape.

QuantumScape is getting closer to the goal of commercializing its technology, though. In its first-quarter report released late last month, the company said it is ahead of schedule to bring its next planned phase into baseline production. That “Cobra” phase is its new solid-state battery production process for manufacturing solid-state battery cells.

It has also placed orders for equipment it plans to install this year for higher-volume cell assembly. QuantumScape said it was on track to produce cells with its solid separators this year with the goal of launching field testing next year.

Today’s move may not make sense solely based on the SEC filing as some investors may have misconstrued it as a company insider making a large purchase. But at least the company remains on track for potential commercialization of its electric vehicle battery technology.

In 2020, QuantumScape (QS -3.68%) was one of the hot stocks to hold, according to Wall Street. The stock back rose as high as $115 per share with a market cap approaching $50 billion. Investors then swooned over the company’s potential to revolutionize electric vehicle charging through solid-state lithium-metal battery technology.

After a steep decline starting in 2021, shares now trade at just $4, with the company having a market cap of around $2.2 billion. Some investors now wonder if it’s time to buy this diamond in the rough. If you are one of them, get familiar with three financial metrics.

QuantumScape investors need these numbers to improve

Compared to current technologies, QuantumScape’s QSE-5 solid-state batteries have notably superior energy density and charging times. The company’s batteries thus allow an EV to go further on a single charge and “refuel” significantly faster. Since long-term forecasts call for sizable growth in EV demand for decades, QuantumScape has an opportunity to ride a market tailwind with its superior products.

The issue is that major automakers like Toyota, Hyundai, and Nio, as well as some start-ups, are developing their own solutions. So while QuantumScape has an impressive offering today, competition will grow as its end market grows.

QuantumScape is a growth stock, but it needs to show growth to succeed. To see if QuantumScape is on the right path, investors should keep an eye on metrics like available cash, average share totals, and net income.

Data by YCharts.

QuantumScape responded to competitive pressures by more than doubling its R&D budget between 2021 and now. The cash burn created is becoming a serious problem. Net losses continue to widen on an annual basis, causing cash levels to wither and shares outstanding to balloon to shrink the funding gap.

By no means is QuantumScape on the verge of bankruptcy. But it may soon be forced to take on expensive debt, onerously dilute shareholders, or cut critical spending areas like R&D. Shares are cheap versus historical levels, but tough choices are ahead for this once-hot growth stock.