What happened

The market sure got a charge from next-generation electric vehicle (EV) battery developer QuantumScape (QS 0.20%) on Monday. Investors sent the company's share price more than 3% higher on the day, easily outrunning the slight (0.1%) gain of the S&P 500 index. Strongly encouraging news from the most prominent EV maker had a knock-on effect on QuantumScape.

So what

It probably goes without saying that said leading EV manufacturer is almighty Tesla (TSLA 5.34%). Over the weekend, Tesla published its latest production and delivery update, and it was a doozy. The company not only notched a new all-time quarterly record for deliveries, it trumped analyst expectations. Meanwhile, its production figure put it on a pace to hit its goal of roughly 1.8 million vehicles this year. 

Where Tesla goes, the rest of the EV pack tends to follow, hence the bullishness around QuantumScape stock in the wake of that update.

This entirely makes sense, as more EVs in production and on the way to customers mean more potential for battery makers. Additionally, QuantumScape potentially has an edge here, as it is busy developing solid-state batteries. These promise to be cheaper, safer, and faster to charge than currently available technology.

Now what

It's clear that the EV segment will continue to be hot; QuantumScape is fortunate to be involved in it. Yet amid the optimism, investors should bear firmly in mind that the company still has much to prove. We don't yet know if its products will be effective and competitive after all, even though early signs are encouraging. Regardless, it's an EV-adjacent company well worth keeping an eye on.