Solid-state electric vehicle (EV) battery developer QuantumScape (QS 11.29%) has been a popular stock over the past few days. The company's technology, packed into an electric motorcycle, was demonstrated to the public for the first time in a live vehicle demonstration, and it was impressive enough to drive the stock well higher.
After seeing its technology in action, the market got excited about QuantumScape, which has had many ups and downs since its IPO in late 2020. Here's how it has done overall in the past few years.
A stop-and-go stock
Had you plunked down $1,000 on QuantumScape stock exactly three years ago from this writing, your stake would be worth just under $864 today.
Image source: Getty Images.
The important factor to bear in mind with the company is that its technology, innovative as it is, is not yet available in any commercialized vehicle. So QuantumScape is pre-revenue, hence an investment in it is speculative. That's why we've seen those numerous share-price peaks and valleys.
That said, the company keeps motoring closer to commercialization.
The big game-changer was when, in mid-2024, it signed a deal for Volkswagen's battery subsidiary PowerCo to license its solid-state battery technology. Under the terms of the arrangement -- built on a previous joint venture between the two companies -- PowerCo has the right to mass-produce QuantumScape's power packs for its parent's vehicles. QuantumScape will earn milestone payments and royalties from such manufacturing.
Powerful potential
The German automotive heavyweight, by the way, holds a chunky equity stake in QuantumScape; this stood at around 17% of the battery developer at the time of the licensing deal. So it's not only a believer in its technology, it also has a vested interest in bringing it to market.
This alone makes QuantumScape a compelling stock. Marry that with advanced technology that could really boost the buy case for EVs, and you've got a company well worth investing in -- even though it's still somewhat speculative.
