Better EV Stock: QuantumScape vs. Rivian

As the electric vehicle (EV) market continues to grow, investors are looking for the best stocks to capitalize on this trend. Two companies that have gained significant attention are QuantumScape (QS) and Rivian (RIVN). Both companies have made strides in the EV sector, but which one is the better investment? Let's compare the two companies based on their technological advancements, partnerships, and financial health.

Technological Advancements:

* QuantumScape: QuantumScape is developing advanced lithium metal batteries that have the potential to outperform current EV batteries. The company's solid-state batteries charge faster, are less volatile, and can improve EV range. QuantumScape recently sent out samples of its latest battery, the QSE-5, to potential customers. (Source: "What's happening with QuantumScape")
* Rivian: Rivian has made a name for itself by producing rugged EVs that have earned it a top-rating from Consumer Reports in owner satisfaction. The company's R1T pickup truck and R1S SUV are its core products, along with a delivery van it sells to Amazon and other commercial customers. Rivian is currently expanding its lineup with the smaller SUV R2 and the R3 model, which will broaden its customer base. (Source: "What's happening with Rivian")



Partnerships:

* QuantumScape: Volkswagen's battery manufacturing subsidiary, PowerCo, is working with QuantumScape and could eventually mass-produce its batteries in the future. The collaboration between the companies could eventually bring in royalties for QuantumScape, as well as a $130 million payment. (Source: "Volkswagen also invests in QuantumScape")
* Rivian: Rivian has a partnership with Volkswagen, which involves a joint venture worth up to $5.8 billion in cash and loans. This partnership will allow Rivian to expand its product lineup and broaden its customer base. (Source: "Rivian's big new partnership")

Financial Health:

* QuantumScape: QuantumScape has not generated any revenue from battery sales yet. The company is still in the development and testing phase of its solid-state battery technology. However, QuantumScape's management says it has enough cash runway to keep its business going into 2028. (Source: "What's happening with QuantumScape")
* Rivian: Rivian is already generating revenue and is on track to post its first positive gross profit in the fourth quarter of 2022. The company has a strong cash position, with $1.59 per share in net cash. Rivian's partnership with Volkswagen has also provided a significant boost to its financial position. (Source: "Rivian for the win" and "Financial Position" section)



In conclusion, both QuantumScape and Rivian have made significant strides in the EV market, but Rivian appears to be the better investment at this time. Rivian's revenue stream, strong cash position, and partnerships have positioned the company well for long-term success. While QuantumScape's technological advancements and partnerships are promising, the company's lack of revenue and the uncertainty surrounding the commercialization of its technology make it a riskier investment. However, investors should closely monitor both companies and consider their potential impacts on the EV market in the near and long term.