QuantumScape Stock: Why I'm Watching for B1 Samples in 2025

QuantumScape stock has surged 125% in three months, but recent market volatility has led to a 50% decline in the past three weeks. Despite the setback, investors should watch for the company's progress in producing B1 samples using the Cobra process, which could indicate a key step closer to overcoming manufacturing challenges. If successful, it could pave the way for field testing in 2026.

Title: QuantumScape Stock Surges, Faces Challenges in Solid-State Battery Race

QuantumScape (NYSE: QS) stock has experienced significant volatility over the past few months, surging 125% in three months but then declining by 50% over the last three weeks. Despite the recent market turbulence, investors should closely monitor the company's progress in producing B1 samples using the Cobra process. If successful, this could mark a crucial step toward overcoming manufacturing challenges and paving the way for field testing in 2026.

QuantumScape's Solid-State Battery Breakthroughs

QuantumScape's stock has been driven by optimism surrounding its solid-state battery technology, particularly the introduction of the Cobra ceramic separator. The company's recent earnings report indicated progress in cost controls and milestone-based funding, but commercial deployment risks persist with 2026+ revenue timelines [3].

The Volkswagen Partnership

QuantumScape's collaboration with Volkswagen's PowerCo, announced in July 2025, represents a significant milestone in the race to commercialize next-generation energy storage. The partnership includes $261 million in milestone-based funding to scale solid-state battery production [1]. This funding aligns incentives, with payments tied to specific production milestones such as the full integration of QuantumScape's Cobra process.

Market Risks and Technical Challenges

Despite the optimism, QuantumScape's financials remain a cause for caution. The company reported a Q2 2025 net loss of $114.7 million and an adjusted EBITDA loss of $63 million. While its $797.5 million liquidity runway extends through 2029, the path to profitability is far from guaranteed [1].

Insider Selling and Market Sentiment

Recent insider selling, particularly by company director Fritz Prinz, raised concerns about internal confidence. The sale of 930,000 shares at an average price of $11.62, reducing his stake by 85%, led to a sharp decline in stock momentum [2]. However, QuantumScape's stock remains significantly higher than its early summer levels, indicating persistent bullish sentiment.

Long-Term Investment Thesis

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 [1].

Conclusion

QuantumScape's collaboration with Volkswagen is a strategic masterstroke, but it is not a guaranteed winner. 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—if they are willing to bet on the company's ability to navigate technical, financial, and competitive challenges.

References

[1] https://www.ainvest.com/news/quantumscape-volkswagen-strategic-alliance-solid-state-battery-race-2508/
[2] https://www.fxleaders.com/news/2025/08/07/buyers-reactivate-as-qs-stock-rallies-10-is-the-pullback-over-for-quantumscape/
[3] https://www.ainvest.com/news/quantumscape-3-65-rally-475th-ranked-trading-volume-hikes-vw-partnership-solid-state-breakthroughs-2508/