Publish date:

QuantumScape Soars After Saying It's Testing New Battery Cells

QuantumScape rises sharply Wednesday after the electric vehicle battery company reports tests on a new battery cell.
Author:

QuantumScape  (QS) - Get QUANTUMSCAPE Report shares soared Wednesday after the electric vehicle battery company reported tests on a new battery cell.

The stock recently traded at $24.13, up 13%. It’s still down 48% for the past six months as investors have grown cautious about speculative electric vehicle stocks.

“We have made and are currently testing our first 10-layer cells,” QuantumScape said.

“These cells, in the commercially relevant 70x85 mm form factor, are being tested … [under] conditions we believe are relevant for automotive applications.”

“While we need to produce and test many more such cells to collect data and statistics on their performance and reliability, this is an extremely important result, as it demonstrates we are able to make 10-layer cells with similar early capacity retention and cycling behavior to what we’ve shown for single- and four-layer cells,” the company added in a statement.

TheStreet Recommends

Dow Slips, S&P 500 Edges Higher as Apple Dips and Boeing Soars

QuantumScape also reported a second-quarter loss of 12 cents a share that widened from 6 cents a year earlier. The FactSet analyst consensus called for a loss of 7 cents in the latest quarter. Revenue was zero in the latest quarter.

“We believe it will be difficult for electric vehicles to fully displace combustion-engine cars without a step-change improvement in battery performance, and we believe QuantumScape’s solid-state lithium metal batteries can play a key role in delivering this step change,” the company said in a letter to shareholders.

“Although there are challenges ahead, every major hurdle we clear becomes a moat that strengthens our competitive position in the race to capture the next-generation battery market,” QuantumScape added.

Electric Vehicle Checkpoint: Jim Cramer Eyes Tesla as a Solar Stock