Quantumscape Sees Moderately Bullish Activity with Shares Up 1.16%

Quantumscape shares are up 1.16% to $9.19 with moderately bullish activity. Options volume is relatively light with 33k contracts traded and calls leading puts for a put/call ratio of 0.25. Implied volatility dropped 1.69 near 83.05, suggesting an expected daily move of $0.48 and a modestly bullish tone.

QuantumScape (NYSE: QS) shares have shown a modest increase of 1.16% to $9.19, with moderately bullish activity, as of July 2, 2025. The options volume remains relatively light, with 33,000 contracts traded, and calls leading puts, resulting in a put/call ratio of 0.25. Implied volatility dropped by 1.69 points to 83.05, suggesting an expected daily move of $0.48 and a modestly bullish tone.

The recent partnership between QuantumScape and Volkswagen's PowerCo, announced in July 2025, represents a significant milestone in the race to commercialize solid-state batteries. This strategic alliance has garnered substantial attention in the financial markets, with QuantumScape's stock experiencing volatility amidst investor skepticism and optimism.

QuantumScape's QSE-5 solid-state battery technology is designed to outperform traditional lithium-ion batteries in terms of energy density and charging speed. The company has secured an additional $131 million in milestone-based funding from Volkswagen, bringing the total funding to $261 million. This funding is structured to align incentives and ensure the successful integration of QuantumScape's proprietary Cobra solid-state separator process into Volkswagen's manufacturing capabilities.

Despite the optimism surrounding this partnership, QuantumScape's financials remain a cause for caution. The company reported a net loss of $114.7 million and an adjusted EBITDA loss of $63 million in Q2 2025. While the company has a liquidity runway of $797.5 million extending through 2029, the path to profitability is far from guaranteed. Analysts project revenue of $4.5 million in 2026 and $60.2 million in 2027, against net losses of $430 million and $371 million, respectively.

The solid-state battery market is projected to grow from $1.18 billion in 2024 to $15.07 billion by 2030, driven by EV demand and regulatory pressures. However, QuantumScape faces formidable competition from companies like Toyota, CATL, and ProLogium. The company's differentiator lies in its licensing model, which avoids the capital-intensive burden of building gigafactories and leverages PowerCo's global manufacturing capabilities to scale production.

For long-term investors, the key question is whether QuantumScape's partnership with Volkswagen represents a defensible position in the energy storage revolution. The answer hinges on three factors: technical execution, strategic partnerships, and capital efficiency. The company's ability to maintain its lead in solid-state innovation, attract additional OEMs, and extend its cash runway through milestone payments and cost reductions will be critical to its success.

QuantumScape's success will depend on its ability to navigate technical, financial, and competitive challenges. While the risks are substantial, so are the rewards. If QuantumScape successfully commercializes its QSE-5 cells by 2027, it could capture a significant share of the $15 billion solid-state market. The partnership with Volkswagen provides both financial and industrial credibility, while the Cobra process addresses a critical scalability bottleneck.

In conclusion, QuantumScape's collaboration with Volkswagen is a high-risk, high-reward proposition. The company's valuation reflects a high degree of optimism about its potential to disrupt the EV battery market. For investors with a long-term horizon and a tolerance for volatility, the current price may offer an entry point. However, prudence is warranted, and diversification within the solid-state battery sector could mitigate the risks of overreliance on a single, unproven technology.

References:
[1] https://www.ainvest.com/news/quantumscape-volkswagen-strategic-alliance-solid-state-battery-race-2508/
[2] https://stockstotrade.com/news/quantumscape-corporation-qs-news-2025_08_09/