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Is QuantumScape a Good Electric Vehicle Stock to Buy?

Published 08/18/2021, 10:25 AM
Updated 08/18/2021, 11:30 AM
© Reuters.  Is QuantumScape a Good Electric Vehicle Stock to Buy?

QuantumScape (QS) has made some pivotal advances in its efforts to scale up its solid-state lithium-metal battery technology. But unfortunately, the company is still far from commercializing this technology. Moreover, considering the intense competition it faces from established players in the solid-state battery market, the question is, is it worth betting on the stock now? Read on to learn the answer.Development stage company QuantumScape Corporation (QS) in San Jose, Calif., is creating next-generation solid-state lithium-metal batteries for use in electric vehicles (EVs). The company has been making significant progress in its pre-pilot manufacturing line QS-0. Also, its recent advance in testing 10-layer cells to develop a solid-state battery has garnered considerable investor attention.

However, QS shares have declined 11.5% in price over the past month and 76% over the past year. In addition, the stock is trading 84.8% below its 52-week high of $132.73, indicating short-term bearishness.

Although QS has made decent progress in developing its battery technology, it is still in the research phase and does not have any products for commercial sale. In addition, strong competition in the solid-state lithium battery technology industry and uncertainty surrounding its production horizon could make investors nervous.

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