QuantumScape Receives Upgrade to 'Buy' Following Technical Advancements and Partnerships

QuantumScape (QS) has been upgraded to "Buy" by Stone Fox Capital due to technical advancements and partnerships, including the Cobra separator technology and a deal with PowerCo. However, Wall Street analysts remain cautious with a consensus "Hold" rating. The average target price is $6.23, implying a 35.22% downside from the current price of $9.61.

QuantumScape Corp. (QS) has recently been upgraded to a "Buy" rating by Stone Fox Capital, reflecting significant technical advancements and strategic partnerships. The company's progress in solid-state battery technology, particularly the Cobra separator process, and its deal with PowerCo have garnered attention. However, Wall Street analysts remain cautious, maintaining a consensus "Hold" rating with an average target price of $6.23, implying a 35.22% downside from the current price of $9.61.

QuantumScape's latest breakthroughs include the successful integration of its proprietary Cobra separator process into baseline production, which has improved production speed 25x over predecessors and reduced equipment footprint by 70%. This process has enabled the company to plan for a 5 GWh/year cell output by 2025 QuantumScape's Breakthrough in Solid-State Battery Commercialization: Strategic Partnerships and Manufacturing Scalability as Keys to Long-Term Investment Success^[1].

The company's strategic partnership with Volkswagen Group's PowerCo has also been a key driver. In Q2 2025, QuantumScape and PowerCo expanded their collaboration, securing up to $131 million in milestone-based payments over two years. This funding is contingent on achieving technical benchmarks, such as the successful integration of the Cobra process into baseline production QuantumScape Batteries Power Ducati at IAA: Time to Buy QS Stock?^[2].

At the IAA Mobility show in Munich, QuantumScape and PowerCo debuted a Ducati V21L motorcycle powered by QuantumScape's QSE-5 cells, built using the Cobra process. This marked the world's first real-world showcase of anode-free solid-state lithium-metal batteries. The cells demonstrated standout performance, with an energy density of 844 Wh/L, ultra-fast charging from 10% to 80% in just over 12 minutes, and the ability to handle 10C continuous discharge QuantumScape Batteries Power Ducati at IAA: Time to Buy QS Stock?^[2].

QuantumScape's financial position also strengthens its investment case. As of Q2 2025, the company holds $797.5 million in liquidity, extending its cash runway to 2029. The recent surge in QuantumScape's stock price, up over 120% year-to-date, reflects growing market optimism QuantumScape's Breakthrough in Solid-State Battery Commercialization: Strategic Partnerships and Manufacturing Scalability as Keys to Long-Term Investment Success^[1].

However, risks remain. Competition from emerging startups and regulatory hurdles could pose challenges. Despite these risks, QuantumScape's depth of IP and extended financial runway position it as a high-conviction play in the EV energy transition.

For investors seeking exposure to the next generation of battery technology, QuantumScape's ability to translate innovation into scalable solutions may prove to be the defining factor in its success.