Why QuantumScape Stock Jumped 68% in June

Quantumscape Corp

The Motley FoolJul 8, 2025 1:14 PM

Key Points

QuantumScape's new separator process, Cobra, takes it closer to commercializing its EV battery technology.
QuantumScape expects to start field testing and mass production of solid-state batteries in 2026.
10 stocks we like better than QuantumScape ›

QuantumScape (NYSE: QS) is building solid-state lithium-metal batteries for electric vehicles (EV) that are seemingly far better than the traditional lithium-ion batteries in terms of energy density, charging, cost, and safety, among other things.

QuantumScape has yet to commercialize its technology, but that hasn't deterred investors from piling into the stock at every hint of progress. In June, shares of QuantumScape jumped a whopping 68%, according to data provided by S&P Global Market Intelligence.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

An electric vehicle charging its battery.

Image source: Getty Images.

QuantumScape meets a key 2025 goal

QuantumScape is presently working with its prospective launch customer and has shipped test samples of Raptor-powered QSE-5, its first planned commercial battery cell. Although QuantumScape has relied on its Raptor heat treatment process to produce separator films for QSE-5 solid-state battery cells so far, it has been working to transition to a new separator production process called Cobra for several months now.

In June, QuantumScape met its primary 2025 goal by integrating the Cobra process into its baseline cell production to replace Raptor. Since Cobra is faster and more energy-efficient, QuantumScape calls it a "step-change innovation" in ceramic separator manufacturing and believes it should help it scale production faster.

There are three reasons why investors saw this development as a huge milestone and sent QuantumScape stock soaring over 60% in the last week of June alone.

First, QuantumScape has been able to bring the Cobra separator process into its production system ahead of schedule. Second, the company should now be able to install higher-volume cell assembly equipment in line with Cobra's higher throughput, allowing it to improve the quality and quantity of its QSE-5 B1 samples. The B1 version of QSE-5 cells are near-production prototypes. Third and most importantly, QuantumScape should be able to send QSE-5 B1 samples this year to potential customers for field testing in 2026.

Is QuantumScape stock a buy?

After testing QuantumScape's prototype cells for several years, Volkswagen's battery subsidiary PowerCo is all set to become QuantumScape's anchor customer. Last year, PowerCo agreed to mass-produce battery cells based on QuantumScape's technology under a non-exclusive license. With Volkswagen's backing confirming the viability of QuantumScape's solid-state battery technology, the latter is now trying to expand its licensing partnerships with other automakers.

So there are a lot of catalysts ahead for QuantumScape stock to keep humming, including forging agreements with other automakers, producing cell samples at scale, and sending them out for field testing in 2026. If QuantumScape's battery cells pass field testing, there could be no stopping this stock as the company then proceeds to commercialize its technology.

However, a lot could still go wrong in between, and even commercial production of solid-state battery cells doesn't guarantee their success. That's the biggest risk to keep in mind if you're thinking of buying QuantumScape stock now.

Should you invest $1,000 in QuantumScape right now?

Before you buy stock in QuantumScape, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and QuantumScape wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $969,935!*

Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.