Goldman Sachs Adjusts QuantumScape Target to $3, Maintains Sell Rating Amid 2025 Goals

Goldman Sachs has increased its price target for QuantumScape to $3 from $2.50, while maintaining a Sell rating. The firm notes a significant objective for 2025 is the delivery of higher volume B samples. Goldman Sachs is optimistic about QuantumScape's recent advances, such as improvements in the Cobra separator manufacturing process and the expansion of its PowerCo agreement. However, the firm retains a cautious stance, citing persistent fundamental risks not accounted for in the stock's valuation.

Goldman Sachs has increased its price target for QuantumScape (NYSE: QS) to $3 per share from $2.50, while maintaining a Sell rating. The firm's bullish outlook on the company's recent advances, such as improvements in the Cobra separator manufacturing process and the expansion of its PowerCo agreement, has not been enough to sway the investment bank to change its rating. Despite the optimistic notes, Goldman Sachs remains cautious, citing persistent fundamental risks not accounted for in the stock's valuation [1].

QuantumScape's stock was down 6.3% as of 3 p.m. ET on July 2, 2025, despite the S&P 500 being up 0.4% and the Nasdaq Composite being up 0.3% at the same point in the day. The stock had been down as much as 11.9% earlier in trading. Shortly before the market closed on July 1, Goldman Sachs published new coverage on QuantumScape and reiterated a sell rating on the stock [1].

The Motley Fool’s expert analyst team has not included QuantumScape in its latest top 10 list of stocks to buy now, suggesting that the stock is still considered a high-risk play despite its potential for significant returns. QuantumScape's solid-state batteries have the potential to revolutionize the electric vehicle (EV) industry, but the company's stock remains volatile and speculative [2].

QuantumScape reported its second-quarter 2025 earnings on July 1, 2025, revealing a slight improvement over analyst expectations, with EPS at -$0.20 compared to the forecasted -$0.21. The company’s stock fell 7.03% to $12.83 in after-hours trading despite the earnings beat. The company has extended its cash runway to 2029, with $797.5 million in liquidity, and continues to focus on expanding its market presence through strategic partnerships [2].

Despite the recent pullbacks, QuantumScape's share price is still up 127% this year. The company's solid-state battery technologies have the potential to make big waves in the EV industry by offering superior charge capacity, faster charging, and safety improvements. However, it remains to be seen whether these technologies will actually be brought to market and used by Volkswagen's PowerCo and other potential customers [1].

References:

[1] https://finance.yahoo.com/news/why-quantumscape-stock-sinking-today-193202790.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-quantumscapes-q2-2025-sees-slight-eps-beat-93CH-4149452