What happened
With several electric-vehicle (EV) stocks charging up this week, QuantumScape (QS 3.18%) couldn't be left far behind. Shares of the EV battery technology company had shot up 23.6% this week as of 1:30 p.m. EST Friday, according to data from S&P Global Market Intelligence. The passage of a long-awaited infrastructure bill and growth moves from QuantumScape this week powered the stock higher.
So what
Last week, the U.S. House of Representatives approved President Joe Biden's $1.2 trillion infrastructure bill, which includes a $7.5 billion investment in an EV charging network of 500,000 chargers across the U.S. The Biden administration isn't just keen to advance clean energy projects in the U.S. but specifically wants the nation to grab a bigger share of the global EV sales market.
Image source: Getty Images.
Monday morning, EV stocks across the board headed for the moon, with EV charging stocks in particular grabbing attention. Although QuantumScape's solid-state batteries are still years away from production, it's a promising battery technology that has caught the attention of EV enthusiasts.
The company also announced the setting up of a corporate campus in San Jose, California, earlier this week. The campus includes three new buildings on a 10-year lease aside from QuantumScape's pre-pilot production line, so investors see it as a tangible growth move from the company as it strives to commercialize its batteries.
Now what
QuantumScape is still testing its battery prototypes, but investors see promise in the stock for two reasons: the prospects of solid-state lithium batteries in EVs, and the fact that QuantumScape is already finding automakers interested in its technology.
For example, the company recently announced having signed a deal with a top global automotive company (QuantumScape didn't name the company) to test its advanced battery prototypes. It already has a partnership with Volkswagen and positive third-party test results for its cells in late October, further fueling investor hopes about the commercial viability of its products.
With the Biden administration also committed to spending billions of dollars on the EV industry, QuantumScape shares could continue to ride the enthusiasm in EV growth stocks.
