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Developing solid-state batteries for the automotive market, QuantumScape (QS +3.14%) is a stock that appears on the radars of numerous growth investors. The company announced its third-quarter 2026 financial results yesterday after the close, and investors are expressing approval of the report today.

As of 1:56 p.m. ET, shares of QuantumScape stock are up 1.4%, retreating from their earlier rise of 13.3%.

Image source: The Motley Fool.

Commercial-scale production is coming into focusWhile QuantumScape doesn't generate substantial revenue yet, the company reported its first customer billings under the agreement it announced in June with Honda, which focuses on integrating its solid-state platform into Honda's technology.

In addition to progress with Honda, QuantumScape reported signing an agreement with a new automotive customer, the details of which will be announced on Nov. 11.

$4.11+$0.13 (+3.14%)

NASDAQ · As of 2:47 PM ET 10/22/26

QuantumScape also announced the signing of a deal for a 100 megawatt-hour (MWh) capacity cell production line intended for markets beyond automotive, including artificial intelligence (AI) data centers, aerospace, and defense. Muehlbauer, a German automation and manufacturing technology specialist, is partnering with QuantumScape on the new production line and serves as an ecosystem provider of cell assembly equipment.

Engineering work on higher-throughput processes and equipment has already commenced, and the company is targeting 2028 for the start of production from the new line, which will represent the first commercial-scale mass production of QS cells.

Should investors charge up their holdings with QuantumScape stock now? While QuantumScape stock initially rose in today's trading, shares have since given back much of their gains. With the company making continued progress toward commercial production of its solid-state batteries, QuantumScape stock carries less risk than it did a few months ago. Nonetheless, the fact that the company is not yet generating substantial revenue means it remains fairly speculative, so investors should proceed cautiously.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

QuantumScape stock (NASDAQ: QS) jumped roughly 10% in Wednesday's after-hours trading despite an $84.5 million quarterly loss, as investors welcomed plans to manufacture solid-state batteries for artificial intelligence data centres and other high-value markets. Shares had closed regular trading at $3.98 before the announcement.

QuantumScape Corporation (QS) Q3 2026 Earnings Call October 21, 2026 5:00 PM EDT

Company Participants

Sam Kamara - Senior Director of Investor Relations
Siva Sivaram - President, CEO & Director
Agnes Tan

Conference Call Participants

Yan Dong - Deutsche Bank AG, Research Division
Mark Shooter - William Blair & Company L.L.C., Research Division
Ben Kallo - Robert W. Baird & Co. Incorporated, Research Division
Ayush Ghosh
Gabriel Gonzales - UBS Investment Bank, Research Division

Presentation

Operator

Good day, and welcome to QuantumScape's Third Quarter 2026 Earnings Conference Call. Sam Kamara, QuantumScape's Senior Director, Investor Relations. You may begin your conference.

Sam Kamara
Senior Director of Investor Relations

Thank you, operator. Good afternoon, and thank you to everyone for joining QuantumScape's Third Quarter 2026 Earnings Call. To supplement today's discussion, please go to our Investor Relations website at ir.quantumscape.com to view our shareholder letter.

Before we begin, I want to call your attention to the safe harbor provision for forward-looking statements that is posted on our website as part of our quarterly update. Forward-looking statements generally relate to future events, future technology progress or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize. Actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. There are risk factors that may cause actual results to differ materially from the content of our forward-looking statements for the reasons that we cite in our shareholder letter, Form 10-K and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes.

Joining us today will be QuantumScape's CEO, Dr. Siva Sivaram; and our Chief Accounting Officer, Agnes Tan. Our Chief Financial Officer, Kevin Hettrich, is recovering from a planned medical procedure, and Agnes will cover the financial portion of today's call.

Why Franchise Models Are Winning the Restaurant Stock DivideQuantumScape NYSE: QS said it is expanding its manufacturing plans after bringing its Eagle Line pilot facility into operation, announcing a planned 100-megawatt-hour mass-production line intended to serve data center, aerospace, defense and other advanced applications.

Chief Executive Officer Dr. Siva Sivaram said startup production from the new line is targeted for 2028. The company also announced an ecosystem partnership with Muehlbauer Group, which will provide cell-assembly equipment for the planned facility.

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Is Wingstop's Growth Story Losing Steam?QuantumScape said the Eagle Line, inaugurated in February, has become central to its customer-sampling efforts and has enabled increased customer billings. Sivaram said the pilot line, along with the company’s Cobra production process, has demonstrated scalable production and provided the confidence to pursue a larger manufacturing step.

Production Strategy and Funding
The proposed 100-MWh line is expected to primarily support QuantumScape’s data-center and advanced-solutions businesses, rather than automotive production. Sivaram said the company intends to retain its capital-light licensing strategy for automotive customers with their own manufacturing capacity, including Volkswagen PowerCo and Honda.

MarketBeat Week in Review – 06/29 - 07/03“This line lets us serve high-value markets directly while keeping our CapEx-light licensing model for automotive,” Sivaram said.

QuantumScape is targeting equipment costs of less than $100 million for the production line, according to Sivaram. The company said it is pursuing non-dilutive funding from customers, government sources, ecosystem partners and licensing partners. It expects to provide a capital plan and 2027 financial guidance on its fourth-quarter earnings call.

The company has not selected a site for the facility and said it would disclose the location at an appropriate time. Sivaram described the equipment-design, construction and installation process as the project’s longest-lead-time component.

QuantumScape said partnerships with Murata, Corning and Muehlbauer now span the company’s production flow, from materials and separators through cell assembly. Management said the partnerships are intended to support an end-to-end manufacturing solution as the company works toward eventual gigawatt-hour-scale production.

Data Center and Advanced-Application Push
During the quarter, QuantumScape introduced its QS PowerBlock reference design for in-rack energy storage at AI data centers. The company launched the product alongside the Open Compute Project Global Summit on Oct. 8.

The company said testing of the QS PowerBlock showed four times the power density and five times the runtime of the relevant Open Compute Project reference specification. Sivaram said the product is designed around the QSE-5 cell and is intended for data-center architectures where racks are expected to require increasing amounts of power.

Management emphasized battery safety as a key part of its pitch to data-center customers. QuantumScape said conventional lithium-ion batteries, including lithium iron phosphate batteries, are not thermally stable above approximately 180 degrees Celsius, while its solid-state batteries have demonstrated thermal stability above 300 degrees Celsius in customer and third-party laboratory testing.

Sivaram said customers have expressed interest in obtaining QS PowerBlock products in volume, which helped support the decision to move forward with the 100-MWh line. He said the 2028 production target aligns with the data-center industry’s expected timeline.

QuantumScape’s QS Advanced Solutions, or QSAS, business is pursuing applications in defense, aerospace, medical devices, consumer electronics and telecommunications. The company said it shipped QSE-5 samples to customers in the defense, aviation and telecommunications sectors and recorded its first QSAS customer billing in the third quarter.

Management said QSAS could address a total market of up to $75 billion by 2030. Sivaram also cited the company’s U.S.-based manufacturing and supply-chain design, including the absence of graphite in its architecture, as differentiators for defense and aerospace applications.

Automotive Development Continues
QuantumScape said automotive cell-development engagement remained robust across global customers. In the third quarter, it recorded its first customer billings under the Honda agreement announced in June. That agreement covers joint development work to integrate QuantumScape’s solid-state battery platform into Honda’s technology roadmap.

The company also signed an agreement with an unnamed global mobility manufacturer whose applications and requirements are aligned with automotive customers. Sivaram said active customer engagements beyond Honda and Volkswagen PowerCo include two other top-10 original equipment manufacturers.

QuantumScape is updating its statement of work with Volkswagen PowerCo and said it amended its collaboration agreement to eliminate transition payments while working to add milestones tied to technology advances. Sivaram said the PowerCo relationship remains strong and is evolving toward milestone-based payments, with potential expansion to applications including data centers and robotics.

The company plans to provide further details on its next-generation technology platform and automotive collaboration model at its Solid-State Battery Symposium on Nov. 11 in Kyoto, Japan.

Third-Quarter Financial Results
Chief Accounting Officer Agnes Tan reported third-quarter GAAP operating expenses of $92.4 million and a GAAP net loss of $84.5 million. Adjusted EBITDA loss was $60.7 million, which Tan said was in line with expectations.

Customer billings: $9.8 million
Capital expenditures: $4.4 million
Liquidity at quarter-end: $819.8 million
Full-year 2026 adjusted EBITDA loss guidance: $250 million to $275 million
Full-year 2026 capital-expenditure guidance: $27 million to $37 million

Tan said customer billings included automotive and non-automotive customers, development activity, ecosystem-partner payments and cell shipments. She cautioned that customer billings are an operational metric rather than a substitute for revenue reported under U.S. GAAP and may fluctuate between quarters.

About QuantumScape (NYSE:QS)QuantumScape Corporation is a development-stage battery technology company focused on solid-state lithium-metal batteries. Its technology is designed to replace the liquid or gel electrolytes used in conventional lithium-ion batteries with a solid-state separator, with the goal of improving energy density, charging performance, safety and operating range for electric vehicles.

The company is developing prototype battery cells and related manufacturing processes for automotive applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in QuantumScape Right Now?Before you consider QuantumScape, you'll want to hear this.

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SAN JOSE, Calif., Oct. 21, 2026 (GLOBE NEWSWIRE) -- QuantumScape Corporation (NASDAQ: QS), a global leader in solid-state lithium-metal battery technology, today announced a planned 100 megawatt-hour (MWh) capacity cell production line to meet demand for solid-state batteries from markets including AI data centers, aerospace and defense. To develop this line, QS has partnered with Muehlbauer Group, a leading German automation and manufacturing technology company, as an ecosystem provider of cell assembly equipment.

QS is currently demonstrating scalable production of solid-state batteries using its highly automated Eagle Line pilot facility in San Jose. Muehlbauer evaluated the Eagle Line processes and developed design enhancements to bring the technology to mass production; engineering work on higher-throughput processes and equipment for the new line is underway. Start of cell production is targeted for 2028.

“We are excited to welcome Muehlbauer to the QS ecosystem,” said Dr. Siva Sivaram, president and CEO of QS. “Muehlbauer is an experienced and respected global player in manufacturing automation and battery equipment, and they’ve shown top-tier system integration capability, impressive engineering depth, and the scalability mindset necessary to bring our groundbreaking technology to the gigawatt-hour scale. They join a world-class ecosystem of technology partners as we bring solid-state batteries into mass production.”

“The Eagle Line proved to us that QuantumScape’s solid-state technology is ready to scale to the next level,” said Josef Markus Mühlbauer, CEO of Muehlbauer Group. “We have been working on-site with QS in San Jose to develop a scale-up plan built on the foundation of the Eagle Line. With decades of experience in turning innovative technologies into scalable production processes, we are proud to be a preferred partner within QuantumScape’s ecosystem and to contribute our expertise to the mission of revolutionizing energy storage and enabling a more sustainable future.”

About QuantumScape Corporation
QuantumScape is on a mission to revolutionize energy storage to enable a sustainable future. The company’s next-generation solid-state lithium-metal battery technology is designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.

About Muehlbauer Group 
With around 4,500 employees at 40 locations worldwide and 45 years of experience, the Muehlbauer Group has developed into one of the most advanced suppliers of complete production solutions. The company has achieved a leading position in the semiconductor industry with its unique die sorting technology and serves 90% of worldwide demand for RFID. More than 90,000 machines and systems have already been installed worldwide, and the Group specialises in high-precision, high-speed assembly systems, even in cleanroom environments.
For more information, visit www.muehlbauer.de.

Forward-Looking Statements
Certain information in this press release may be considered “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s expectations for its partnership with Muehlbauer Group, the anticipated benefits and contributions of Muehlbauer under that partnership, the design, development, build-out and timing of a planned 100 MWh cell production line, including engineering of higher-throughput processes and equipment and the targeted 2028 start of production, the scalability of the Eagle Line processes, the progression to mass production and gigawatt-hour scale production, the commercialization and scaling of its solid-state lithium-metal battery technology, and the application of its technology to AI data center, aerospace, defense and other markets. These forward-looking statements are based on management’s current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements due to various risks, including the successful development and commercialization of our solid-state battery technology, achieving technical and financial milestones, building out of high-volume processes and otherwise scaling production, the performance of third-party partners and suppliers, achieving the performance, quality, consistency, reliability, safety, cost and throughput required for commercial production and sale, changes in financial conditions, market demand for EVs, AI data center, aerospace and defense, and other energy storage applications, retaining key personnel, competition, regulatory changes, broader economic conditions, and other factors, including those discussed in the section titled “Risk Factors” in our Annual Report and Quarterly Reports and other documents filed with the Securities and Exchange Commission from time to time. Except as otherwise required by applicable law, the company disclaims any duty to update any forward-looking statements.

Contacts:

For Investors [email protected]

For Media [email protected] 

QuantumScape Corporation (NYSE:QS – Get Free Report)’s stock price hit a new 52-week low during mid-day trading on Monday. The company traded as low as $4.38 and last traded at $4.3650, with a volume of 1,933,521 shares trading hands. The stock had previously closed at $4.58.

Wall Street Analyst Weigh In Separately, TD Cowen cut their target price on QuantumScape from $8.00 to $6.00 and set a “hold” rating for the company in a research note on Friday, July 24th. Five investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, QuantumScape presently has an average rating of “Hold” and a consensus target price of $9.47.

Get Our Latest Stock Report on QuantumScape

QuantumScape Stock Performance The stock has a market cap of $2.68 billion, a price-to-earnings ratio of -5.33 and a beta of 2.83. The company has a quick ratio of 21.14, a current ratio of 21.14 and a debt-to-equity ratio of 0.02. The company has a 50 day simple moving average of $5.36 and a 200 day simple moving average of $6.48. QuantumScape (NYSE:QS – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported ($0.16) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.18) by $0.02. The company’s revenue for the quarter was up .0% on a year-over-year basis. During the same quarter last year, the company earned ($0.20) earnings per share. As a group, equities research analysts forecast that QuantumScape Corporation will post -0.82 EPS for the current year.

Insider Transactions at QuantumScape In related news, CTO Timothy Holme sold 75,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $5.09, for a total value of $381,750.00. Following the completion of the transaction, the chief technology officer owned 1,583,075 shares of the company’s stock, valued at $8,057,851.75. This represents a 4.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 294,599 shares of company stock worth $1,473,271. 3.93% of the stock is owned by corporate insiders.

Institutional Trading of QuantumScape A number of hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP increased its stake in shares of QuantumScape by 134.6% in the first quarter. Dimensional Fund Advisors LP now owns 5,735,035 shares of the company’s stock valued at $36,570,000 after buying an additional 3,290,942 shares during the period. Bank of New York Mellon Corp bought a new position in QuantumScape in the 2nd quarter valued at approximately $9,619,000. Clear Street Group Inc. acquired a new stake in QuantumScape during the 4th quarter worth approximately $10,314,000. SG Americas Securities LLC boosted its position in QuantumScape by 219.8% during the 1st quarter. SG Americas Securities LLC now owns 307,363 shares of the company’s stock worth $1,961,000 after buying an additional 563,842 shares during the period. Finally, AXQ Capital LP boosted its position in QuantumScape by 313.2% during the 2nd quarter. AXQ Capital LP now owns 463,653 shares of the company’s stock worth $3,505,000 after buying an additional 351,451 shares during the period. Institutional investors and hedge funds own 29.87% of the company’s stock.

QuantumScape Company Profile (Get Free Report)

QuantumScape Corporation is a development-stage battery technology company focused on solid-state lithium-metal batteries for electric vehicles and other applications. Its technology is designed to replace conventional lithium-ion battery components, including the graphite anode, with a lithium-metal anode and a solid ceramic separator.

The company is developing battery cells intended to offer higher energy density, faster charging, improved safety and longer operating range than many conventional lithium-ion batteries.

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QuantumScape Corporation (QS) Discusses Expansion Into Advanced Solutions and Data Center Verticals for Battery Technology October 5, 2026 8:00 PM EDT

Company Participants

Kevin Hettrich - Chief Financial Officer
George Hart
Shahar Noy

Conference Call Participants

Itay Michaeli - TD Cowen, Research Division

Presentation

Kevin Hettrich
Chief Financial Officer

Good morning. My name is Kevin Hettrich. I'm the Chief Financial Officer of QuantumScape. I'm joined here today by George Hart on the far side, our Vice President of Operations and Strategy, who's here to talk about our QuantumScape Advanced Solutions vertical as well as Shahar Noy, who leads our QuantumScape data center vertical. I do have a word on forward-looking statements. Basically, there may be some, and I would encourage investors to read the disclaimer as well as our SEC filings where we talk about the risks where the actuals may differ. And that would take us to the agenda.

I'll kick things off with some brief context before handing it over first to George from a QuantumScape Advanced Solutions perspective to talk about target application areas, product differentiation as well as go-to-market strategy before George hands it off to Shahar to do the same for the QS data center vertical. So to set the stage, QuantumScape began in automotive, where we work with today 10 -- 4 of the top 10 global OEMs, including Volkswagen and Honda in various stages of customer engagement. Our OEM partners are attracted to the higher levels of performance that our solid-state cell technology enables, notably including energy density, power and safety. Those qualities appeal, of course, beyond automotive.

And so in 2026, taking advantage of our Eagle pilot line and its additional sampling capabilities, we set 1 of our 4 annual goals to enter adjacent high-value markets adjacent to automotive. On our July earnings call, we announced those

QuantumScape (QS -0.65%), a developer of solid-state batteries, hasn't commercialized any of its products or generated any meaningful revenue yet. That's why its stock trades nearly 97% below its record high of $131.67 per share, which it set on Dec. 22, 2020.

But at $4.50 per share, QuantumScape still has a market cap of $2.8 billion. That's a lofty valuation for a pre-revenue company, but it might justify that premium if it finally commercializes its first QSE-5 batteries. Let's see what it will take to finally reach that milestone.

Image source: Getty Images.

Why hasn't QuantumScape commercialized its batteries? QuantumScape's solid-state batteries are ideal for electric vehicles because they have better thermal resistance, higher charging capacities, and shorter charging times than conventional lithium-ion batteries. However, they're also more expensive and difficult to manufacture.

QuantumScape originally planned to produce its first commercial batteries by 2024. Still, its supply chain constraints and the technical challenges of mass-producing its ceramic separator (which prevents lithium fibers from short-circuiting the battery) caused major delays.

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QuantumScape co-developed those batteries with Volkswagen (OTC:VWAP.Y) for over a decade, but it's still shipping samples instead of commercial products. In 2024, it abandoned its goal of mass-producing its own batteries and agreed to license its technology to Volkswagen's PowerCo subsidiary and other automakers.

That shift toward an asset-light, higher-margin licensing business makes sense, but QuantumScape doesn't expect its designs to be ready for commercialization until 2029. It replaced its older Raptor separator process with its newer Cobra process this year. However, that upgrade will merely help it ramp up production of high-volume samples for automakers rather than jump-start its commercial business.

Other automakers and start-ups have also been developing their own solid-state batteries. For example, Toyota (TM +1.50%) plans to launch its first solid-state battery EVs by 2027-2028. If QuantumScape can't keep up with those competitors, its stock could sink even lower.

What's the one milestone that could change everything? For now, QuantumScape is focused on expanding its Eagle Line pilot production line for higher-volume samples and partnering with more OEMs. But for its stock to rally, it will need to achieve commercial readiness before 2029. If it doesn't reach that milestone ahead of schedule, it could be rendered obsolete by its growing list of competitors.

Without any clear plans to generate revenue before 2029, QuantumScape's market cap could shrink significantly as rising Treasury yields drive investors toward safer investments. I'd steer clear of this speculative stock until more green shoots appear.

When QuantumScape (QS -2.90%) went public nearly six years ago, the bullish buzz was understandably palpable. Its solid-state lithium battery technology was just the forward leap the electric vehicle (EV) industry was seeking, giving these cars the driving range between recharges they needed.

Shares soared shortly after this company's initial public offering. Ever since its late-2020 peak, however, the stock price has dwindled downward. Its best shot at a reversal came late last year, but the stock has since fallen more than 70% from that peak and is now back within sight of last year's record low.

It's time to admit it. This company isn't going to do what so many investors were hoping it would.

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Too slow The idea is savvy enough. While standard liquid lithium batteries are proven, in an electric vehicle where every watt-per-pound matters, any possible improvement in energy-storage efficiency is worth making. To this end, QuantumScape's solid-state solution added on the order of 20% to 25% more EV driving range for charge -- a significant boost that just might make electric vehicles marketable to range-worried consumers. That's why Volkswagen become a developmental partner and a major stakeholder even back before the company's 2020 initial public offering.

So what went wrong? In simplest terms, QuantumScape was just taking too long to get its technology ready for mass commercialization, opening the door to bigger and better-funded competitors like China's BYD, Toyota Motor, and Nissan Motor to beat it to the market.

Indeed, BYD expects to see its in-house-designed solid-state lithium batteries installed in some of its vehicles by 2027, with large-scale production and usage projected by 2030. Given that it's now the world's leading electric vehicle manufacturer (as measured by unit sales) and is also supplying other EV makers -- including Tesla -- with lithium batteries and related tech, it's a stark indication of how QuantumScape is falling behind, with its commercialization not likely until at least 2029.

Image source: Getty Images.

The kicker: Although at one point Volkswagen was expecting to eventually become world's leading EV maker, it's since been lapped by both Tesla and BYD. Earlier this month, in fact, the company postponed a $7 billion investment in an EV battery plant located in Ontario, Canada. Production that was supposed to begin next year now won't start until 2029.

While the impact this decision may have on QuantumScape isn't yet entirely clear, given the two companies' close developmental relationship, it's a concern for QS shareholders simply because it gives competitors another two years to refine their tech and forge or deepen their existing supply relationships.

Still bleeding money (on the order of $100 million per quarter now) with only about $900 million in the bank, it's not clear how QuantumScape is going to ramp-up production capacity, or even simply survive without some sort of significant help; raising new funds may not be easy at this point, given the current backdrop.

Not worth the risk Never say never. QuantumScape may well navigate its way out of this challenge.

Just don't ignore everything that's happening within and around the EV battery business, much of which is leaving this company at a growing competitive disadvantage. It brings too much risk to the table for most investors, and certainly not high-enough odds of any real reward.

Investors searching for high-growth potential often weigh the merits of artificial intelligence against the future of electric vehicle batteries. BigBear.ai (BBAI +4.28%) and QuantumScape (QS +2.59%) represent two different ways to play these trends.

BigBear.ai specializes in decision intelligence software for government and commercial sectors, while QuantumScape focuses on developing next-generation solid-state batteries for electric vehicles. Investors compare them because both represent speculative, high-growth opportunities in technologies that could redefine their respective industries over the next decade. Each company faces unique challenges in scaling operations and achieving consistent profitability.

The case for BigBear.aiBigBear.ai provides decision intelligence software that helps organizations make sense of complex data for global supply chains, autonomous systems, and cybersecurity. According to its latest annual report filed in early 2026, its primary customers include the U.S. Intelligence Community and the Department of Defense. Customer concentration like this adds a layer of risk to the business, as major commercial and government contracts contributed 51% of total revenue in 2025, primarily within the tech stocks landscape.

In FY 2025, revenue reached nearly $127.7 million, representing a decline of roughly 19.3% compared to the revenue reported in the previous fiscal year. This revenue drop contributed to a substantial net loss of approximately $293.9 million for the period. The net margin, which indicates the percentage of revenue remaining as profit after accounting for all operating and non-operating expenses, was a negative 230.2%.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.0x, indicating that the company carries very little debt compared to its shareholder equity. The current ratio, which measures a company's ability to cover short-term debts with short-term assets, was approximately 1.8x. Free cash flow for FY 2025 was nearly negative $46.3 million, which is defined as cash from operations minus capital expenditures.

The case for QuantumScapeQuantumScape is working to revolutionize the automotive industry by developing solid-state lithium-metal batteries designed for next-generation electric vehicles and mobility applications. The company primarily collaborates with the Volkswagen (VLKPF -10.03%) Group and its subsidiary, PowerCo, for the industrialization and eventual mass production of its proprietary technology. It also maintains sampling agreements with other luxury carmakers and has recently initiated a new battery partnership with Honda to expand its future market reach.

In FY 2025, revenue was nearly $0.0 because the company remains in its pre-commercial development stage and has only just begun early customer billings. Despite having no revenue, QuantumScape reported a net loss of approximately $435.1 million for the fiscal year. This loss reflects the high costs associated with research, development, and the scaling of its manufacturing processes before achieving full commercialization.

As of its December 2025 balance sheet, the debt-to-equity ratio was nearly 0.1x, which measures total debt against shareholder equity to assess financial leverage. The current ratio was approximately 15.9x, suggesting a high level of liquidity and cash available to fund ongoing operations and research efforts. Free cash flow for FY 2025 was close to negative $278.8 million, representing cash from operations minus capital expenditures.

Risk profile comparisonBigBear.ai faces significant revenue concentration, as it depends on a small number of government and public sector customers for the majority of its sales. The company is also dealing with a material class action lawsuit related to disclosed accounting errors and the requirement to restate multiple years of financial statements. Ongoing delays in required regulatory filings and the potential for severe penalties from government contracting audits further complicate the operational outlook for the company.

QuantumScape faces the formidable challenge of proving its solid-state battery technology can be manufactured at a commercial scale and meet strict cost targets. The company relies heavily on its relationship with Volkswagen for development, meaning any shift in the partner's strategy could harm its prospects. Furthermore, QuantumScape must successfully defend its intellectual property, including its ceramic separator technology, while navigating the high capital requirements needed to fund its research facilities.

I'd go with BigBear.ai. Both companies are early-stage and unprofitable, but BigBear has something QuantumScape is still working toward: a growing commercial revenue stream backed by government contracts that competitors find difficult to displace.

QuantumScape is making incremental progress on solid-state battery technology, and a small number of automakers are paying for access to its platform. The long-term vision here is worth watching. But the path to commercial scale runs through an automotive industry that moves slowly, and the timeline keeps stretching.

BigBear.ai, by contrast, is winning classified national security contracts, growing its backlog, and improving gross margins at a pace that suggests the business model is starting to find its footing. The path to profitability is still long, but the direction is encouraging.

When choosing between two speculative early-stage companies, owning the one already generating revenue from customers that cannot easily walk away is the more comfortable starting point for me.

QuantumScape Corporation (QS) Presents at Morgan Stanley's 14th Annual Laguna Conference Transcript

Shares of QuantumScape (NYSE:QS | QS Price Prediction) are down 1% to $5.14 in Tuesday afternoon trading, extending a slide that has left the solid-state battery developer down 51% year to date.

This is an exciting time for investors. Emerging technologies, such as artificial intelligence (AI) and electric vehicles (EVs), offer strong investment opportunities in innovative businesses.

One such company is QuantumScape (QS +0.55%). It sits at the intersection of AI and EVs, since its solid-state battery technology can provide power for both. The company recently announced the creation of business units dedicated to these two areas, and a third focused on other markets, including aerospace and defense.

After hitting a 52-week high of $19.07 in 2025, the stock fell to a low of $4.77 toward the end of July and has remained near that level. Is this a buy opportunity? Here's a closer look at QuantumScape and whether it's a worthwhile investment.

Image source: Getty Images.

QuantumScape's opportunities The energy density, power performance, and safety profile of QuantumScape's solid-state batteries caught the attention of Volkswagen, which has invested hundreds of millions of dollars in the battery maker over the past several years. Volkswagen isn't the only interested party.

QuantumScape announced a multiyear partnership with automotive giant Honda in June. Another major automaker showing confidence in the batteries affirms the strength of the technology. QuantumScape also alluded to working with other major automotive manufacturers, a further sign that its tech is catching on.

Artificial intelligence offers yet another avenue for the company's products. The data centers housing AI systems are increasingly adopting large-scale battery storage architectures pioneered by the electric vehicle industry. This is because AI computing infrastructure is growing in sophistication and size, necessitating so much electricity that EV batteries are now seen as a solution, opening the door for QuantumScape.

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QuantumScape's challenges Before it can capitalize on opportunities in the EV and AI markets, QuantumScape must get its solid-state batteries to a point where mass production is possible. Once it proves it can produce thousands of flawless battery cells quickly and cheaply, it can turn over the manufacturing to its automotive partners.

From there, the company can produce revenue by licensing its design and technology to partners. However, management admitted, "Demonstrating scalable production of a unique technology on a first-of-a-kind automated line is a substantial challenge."

Consequently, the company does not expect to achieve commercialization of its batteries until at least 2029. For now, QuantumScape produces no income and keeps its operations afloat by tapping into its cash stockpile.

The company ended the second quarter with over $800 million in cash, cash equivalents, and marketable securities on its balance sheet. Without revenue coming in, it strives to stretch its cash hoard to reach the 2029 commercialization milestone.

Whether the battery maker has enough funds is questionable. It projects 2026's full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss will be between $250 million and $275 million. Its 2025 adjusted EBITDA loss was $252.3 million. Cost-cutting efforts enabled it to reduce its 2026 full-year capital expenditure guidance to between $27 million and $37 million.

Given these numbers, QuantumScape is skating on thin ice. It would have to execute flawlessly to reach 2029 without requiring additional funding. As a result, investing in QuantumScape stock is only for those comfortable with high risk.

Personally, I would not invest. The company is demonstrating promising technology, but keeping its business afloat without a fresh infusion of cash looks like a challenge right now.

QuantumScape (QS -0.64%), a developer of solid-state batteries, went public through a merger with a special purpose acquisition company (SPAC) on Nov. 27, 2020. Its stock opened at $24.80 on its first day and closed at an all-time high of $131.67 on Dec. 22, 2020.

Before going public, QuantumScape claimed it could commercialize its first batteries by 2024, and that its revenue would soar from $14 million in 2024 to $275 million in 2026. But as of this writing, it hasn't commercialized any batteries nor generated any meaningful revenue yet.

That's why QuantumScape's stock plummeted 96% to its current price of about $5. Will it bounce back next year as it makes more progress toward launching its first batteries?

Image source: Getty Images.

Why did QuantumScape miss its original targets? QuantumScape's solid-state batteries have higher charging capacities, shorter charging times, and better thermal resistance than liquid-based lithium-ion batteries. But they're also more expensive and challenging to manufacture than their lithium-ion counterparts.

A major technological hurdle for QuantumScape is the mass production of its flexible ceramic separator, which prevents dendrites (lithium fibers) from short-circuiting the battery. Last year, it replaced its older Raptor separator process with its new Cobra separator process to improve its cell reliability, equipment productivity, and total yields. That upgrade helped it ramp up its production of high-volume samples of its QSE-5 batteries for electric vehicle makers.

The QSE-5, which was co-developed with Volkswagen (OTC:VWAP.Y), has an energy density of 844 Wh/L (watt hours per liter) and can be charged from 10% to 80% in 12 minutes. Most lithium-ion batteries have an average density of 300-700 Wh/L with an average charging time of 20 minutes to an hour. Therefore, the QSE-5 could be a major upgrade for EVs.

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QuantumScape originally planned to manufacture its own batteries. But in 2024, it abandoned that strategy and instead agreed to license its technology to Volkswagen's PowerCo subsidiary and other automakers. That shift would enable the company to operate a higher-margin, asset-light licensing business, but it's still nowhere near commercializing those designs.

When will QuantumScape finally commercialize its designs? During its second-quarter report on July 22, QuantumScape said its battery designs wouldn't achieve commercial readiness until 2029. At the same time, more automakers and start-ups are joining the race to mass-produce their own solid-state batteries. If QuantumScape can't keep up with those competitors, its business could fizzle out before it commercializes its first batteries.

That's a murky outlook for an unprofitable, pre-revenue company that's already valued at $3.4 billion. So while solid-state batteries might attract more attention next year, investors shouldn't expect QuantumScape's stock to soar back toward its all-time highs.

Timothy Holme, the chief technology officer at QuantumScape Corporation (QS +4.91%), reported a sale of 75,962 shares of Class A Common Stock on August 18 and August 19, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold75,962Shares sold (directly held)54,431Shares sold (indirectly held)21,531Transaction value~$437,000Post-transaction shares (directly held)1,658,075Post-transaction value$9.75 millionTransaction value based on SEC Form 4 weighted average sale price ($5.75); post-transaction value based on the August 19 market close ($5.88).

Key questionsWhat was the regulatory context for this transaction?
The activity was partially non-discretionary, as 34,086 shares were withheld to cover tax obligations following the release of restricted stock units (RSUs), while the remaining sales were scheduled under a Rule 10b5-1 trading plan adopted on June 5, 2025.How does the executive's remaining position compare to the shares sold?
Holme's remaining direct position of 1.7 million shares is substantially larger than the 75,962 shares disposed of in this transaction, and the executive also holds 1.2 million indirect derivative securities.What is the current valuation framework for these shares?
The stock was priced at $5.88 as of the August 19 market close, a level that reflects a 26% decline over the previous 12 months as of the transaction date.What was the nature of the indirect holdings liquidation?
The transaction resulted in the sale of 21,531 shares held indirectly, which represented the entirety of the executive's indirect common stock position at the time of the filing.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$5.88Market Capitalization$3.6 billionNet Income (TTM)-$405.0 millionOne Year Total Return-26%Company SnapshotQuantumScape specializes in the development and commercialization of solid-state lithium-metal battery technology, with primary applications in electric vehicle powertrains and secondary applications across various industrial and consumer markets.The company generates revenue through licensing agreements, development partnerships, and manufacturing collaborations with automotive original equipment manufacturers seeking next-generation battery solutions for electrified vehicle platforms.QuantumScape's primary customers are major automotive manufacturers and tier-one suppliers pursuing advanced battery technologies to enhance electric vehicle range, performance, and cost competitiveness in the global EV market.QuantumScape Corporation operates as a pre-revenue stage technology company focused on commercializing solid-state battery technology for the rapidly expanding electric vehicle sector. Founded in 2010 and headquartered in San Jose, California, the company maintains a lean operational structure with approximately 700 employees dedicated to advancing battery chemistry and manufacturing processes. The company's competitive positioning centers on proprietary solid-state lithium-metal battery architecture, which offers potential advantages in energy density, charging speed, and thermal stability compared to conventional lithium-ion battery technologies.

What this transaction means for investorsHolme's sale splits into two pieces, and both are explainable without any signal. Roughly 34,000 shares came out through tax withholding on vested RSUs, while the rest sold under a 10b5-1 plan he set up back in June 2025, well before this quarter's news cycle. Plus, the sale wiped out his entire indirect stock position, which sounds bigger than it is since he still holds 1.7 million shares directly and another 1.2 million in derivative securities.

More importantly, as CTO, Holme is basically the person actually responsible for the technology QuantumScape just got Honda to bet on. CEO Siva Sivaram described that partnership on the July earnings call as the result of "one of the most rigorous assessments of our technology to date," and that assessment is Holme's engineering, not a marketing claim. The company also reported a GAAP net loss of $98.2 million for the second quarter, narrower than the $114.7 million loss a year earlier, while customer billings hit $21.8 million through midyear, already ahead of all of 2025.

For long-term investors, whether QuantumScape's Eagle Line can keep doubling output in the back half of the year, as management has promised, matters far more here than a CTO's scheduled trade.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Kevin Hettrich, the chief financial officer of QuantumScape Corporation (QS +4.91%), disposed of 31,095 shares of Class A Common Stock on August 18, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold31,095Transaction value$179,000Post-transaction shares (directly held)1,785,162Post-transaction value$10.28 millionTransaction value based on SEC Form 4 weighted average sale price ($5.74); post-transaction value based on the August 18 market close ($5.76).

Key questionsWhat were the specific circumstances of this disposition?
The transaction was a non-discretionary sale-to-cover, conducted automatically to satisfy tax withholding requirements upon the vesting of equity awards, and does not reflect a discretionary change in the insider's investment thesis.How much equity does the CFO maintain in the company?
Following this reduction, Hettrich continues to hold 1.8 million shares of Class A Common Stock directly and also holds derivative securities in the form of restricted and performance restricted stock units.What is the company's current financial and market position?
Headquartered in San Jose, the company is developing solid-state lithium-metal batteries for electric vehicles and reported a trailing twelve-month net loss of $405.0 million as of the August 18 transaction date.How has the stock performed leading up to this filing?
At the time of the transaction, shares were priced at $5.74, reflecting a one-year return of -30% as of August 18, while the stock closed at $5.88 as of the August 19 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$5.88Market Capitalization$3.6 billionNet Income (TTM)-$405.0 millionCompany SnapshotQuantumScape develops and commercializes advanced solid-state lithium-metal battery technology designed primarily for electric vehicle applications, with additional use cases across various industrial and consumer segments.The company operates a technology development and licensing business model, focusing on advancing next-generation battery solutions with enhanced energy density and performance compared to conventional lithium-ion alternatives.QuantumScape's primary target market consists of electric vehicle manufacturers and automotive suppliers seeking differentiated battery technology to improve vehicle range, charging speed, and overall performance metrics.QuantumScape Corporation, headquartered in San Jose, California, is a specialized battery technology company with 700 employees focused on solid-state lithium-metal battery innovation. The company is currently in a pre-revenue or early commercialization phase, as evidenced by its TTM net loss of $405.0 million, reflecting substantial research and development investments required to bring advanced battery technology to market. With a market capitalization of $3.6 billion, QuantumScape represents a capital-intensive venture positioned at the intersection of automotive electrification and advanced materials science.

What this transaction means for investorsHettrich's sale isn't a one-off. He's sold shares every month this year under the same 10b5-1 plan he set up back in June 2025, including 9,800 shares in June and another 9,800 in July, both well before this quarter's news. August's batch is bigger at 31,095 shares, but it fits the same pattern and comes out of the 1.8 million shares he still holds directly.

As CFO, Hettrich is the one actually managing the balance sheet that QuantumScape is burning through to get to commercialization. He reiterated full-year adjusted EBITDA loss guidance of $250 million to $275 million on the July call, while lowering capital expenditure guidance to $27 million to $37 million, and he called the quarter's $64.2 million adjusted EBITDA loss "in line with expectations." Meanwhile, customer billings reached $21.8 million through midyear, already ahead of the $19.5 million QuantumScape booked in all of 2025, and the company ended the quarter with $859 million in liquidity to fund the Eagle Line ramp. For long-term investors, whether that cash lasts long enough to reach real commercial volume is the number worth tracking, not another month of scheduled selling.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Mohit Singh, chief development officer of QuantumScape Corporation (QS +4.91%), sold 34,304 shares of Class A Common Stock on August 18, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold34,304Transaction value$196,905Post-transaction shares (directly held)1,737,150Post-transaction value$10.01 millionTransaction value based on SEC Form 4 weighted average sale price ($5.74); post-transaction value based on the August 18 market close ($5.76).

Key questionsWhy was this transaction executed?
The sale of 34,304 shares was non-discretionary, performed solely to cover tax obligations following the release of restricted stock units, and does not reflect the insider's view on the stock.What is the current scale of the insider's equity interest?
Following this disposition, Singh retains roughly 1.7 million shares held directly, which include restricted stock units and performance restricted stock units that contribute to his 0.3% ownership stake.What is the financial position of the company?
QuantumScape, which focuses on the advancement of solid-state lithium-metal batteries, reported a trailing twelve-month net loss of $405.0 million as of the August 19 market close.How has the stock performed leading up to this event?
As of the August 18 transaction date, the company's Class A Common Stock had a one-year total return of roughly -30%.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$5.88Market Capitalization$3.6 billionNet Income (TTM)-$405.0 millionCompany SnapshotQuantumScape Corporation specializes in the development and commercialization of solid-state lithium-metal battery technology, a next-generation power solution primarily for electric vehicles and other advanced applications.The company generates revenue through the advancement, licensing, and eventual market deployment of proprietary solid-state battery technology, positioning itself as a technology innovator in the energy storage sector rather than a traditional battery manufacturer.QuantumScape's primary target customers are electric vehicle manufacturers and original equipment suppliers seeking high-performance, next-generation battery solutions to enhance vehicle range, charging speed, and overall performance characteristics.QuantumScape Corporation is a pre-revenue technology development company with a market capitalization of $3.6 billion, reflecting investor expectations for the commercialization of solid-state batteries. Founded in 2010 and headquartered in San Jose, California, the company maintains a focused organizational structure with approximately 700 employees dedicated to advancing solid-state lithium-metal battery technology. The company's competitive positioning centers on proprietary solid-state battery architecture designed to address critical limitations of conventional lithium-ion batteries, including energy density, thermal stability, and charging efficiency.

What this transaction means for investorsSingh's sale is one of several in a batch of QauntumScape executive transactions this past week and marks another tax-withholding sale-to-cover tied to vested equity. For Singh, 34,304 shares barely dent the 1.7 million he still holds directly, so there's no signal here in the filing alone.

That said, his title as chief development officer puts him closer to QuantumScape's long-term roadmap than perhaps any single quarter's numbers. The company's Q2 letter to shareholders, signed by CEO Siva Sivaram and CFO Kevin Hettrich, said "the Eagle Line is ramping up to enable increased customer shipments" in the back half of the year, with larger-format cells and more technology in the pipeline beyond the QSE-5 platform Honda just signed on to evaluate. QuantumScape narrowed its GAAP net loss to $98.2 million last quarter, but the roadmap matters much more because the stock’s price has, of course, priced in future expectations. QuantumScape traded as high as $131.67 in December 2020, and even after a real spike toward $19 in July on AI data-center enthusiasm, shares near $5.74 today sit roughly 96% below that peak. Whether Singh's team can turn the next generation of cells into paying customers is what will eventually close that gap, and this filing won't tell you that.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

A month has gone by since the last earnings report for QuantumScape Corporation (QS - Free Report) . Shares have added about 11.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is QuantumScape due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for QuantumScape Corporation before we dive into how investors and analysts have reacted as of late.

QuantumScape Q2 Loss Narrower-Than-ExpectedQuantumScape reported second-quarter 2026 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company delivered an earnings surprise of 11.1%. The company had incurred a loss of 20 cents per share a year earlier.

QuantumScape did not report GAAP revenues. The quarter featured lower operating expenses, improving Eagle Line productivity and $10.8 million in customer billings. The company also expanded its automotive relationships and established business verticals targeting electric vehicles, AI data centers, aerospace and defense.

Operating Expenses DeclineGAAP net loss narrowed 14.4% year over year to $98.24 million from $114.70 million. Total operating expenses fell 14.1% to $106.13 million, supporting the improvement in the bottom line.

Research and development expenses declined 18.4% to $82.53 million. General and administrative expenses increased 5.3% to $23.59 million. Interest income was $8.36 million, down from $8.94 million in the prior-year quarter.

QS Builds Automotive PartnershipsThe company announced a multi-year partnership with Honda to advance its solid-state lithium-metal battery technology for automotive and other applications. The agreement followed an extensive evaluation of QuantumScape’s technology and adds another top-10 global automaker to its customer portfolio.

QS also updated its collaboration and licensing arrangement with Volkswagen Group’s PowerCo. The revised milestones focus on automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. The company is working with four top-10 automakers and shipped cells to another automotive customer during the quarter.

Eagle Line Ramps Sample ProductionQuantumScape continued to ramp the Eagle Line, its automated pilot production line in San Jose. Core tools achieved uptime above 90%, while key productivity measures reached management’s targets. The company is increasing cell volumes and shipping samples to customers.

QS aims to double cell output further in the second half of 2026. Higher production is expected to accelerate customer shipments, shorten development cycles and provide a foundation for transferring manufacturing processes to future high-volume facilities. QS continues to work with Murata Manufacturing and Corning on scaling ceramic separator production through the Cobra process.

QuantumScape Targets New High-Value MarketsThe company created three business verticals. QSEV will focus on electric vehicles, QSDC will pursue AI data centers, and QSAS will address advanced applications such as aerospace and defense.

QSDC is working with original design manufacturers and data center architects on solutions based on the QSE-5 platform. QSAS shipped QSE-5 cells to a major U.S. defense contractor and is engaging other aerospace and defense customers. Management believes the technology’s energy density, power capability and safety profile can support these markets.

QS Advances Safety and Larger-Format CellsIncreased Eagle Line output enabled broader safety testing of QSE-5 cells. Testing included nail penetration, external short circuits and thermal stability at temperatures up to 300 degrees Celsius. Management said the larger test set replicated findings from earlier prototypes.

The company also demonstrated that its Cobra process can produce larger ceramic separators. Larger-format cells can improve packaging efficiency and raise cell-level energy density, while giving QS greater flexibility to meet varying customer requirements.

Capital Spending Forecast ReducedAdjusted EBITDA loss was $64.19 million compared with a loss of $63.01 million a year earlier. QuantumScape maintained its full-year 2026 adjusted EBITDA loss guidance of $250-$275 million.

Capital expenditures totaled $4.62 million, down 46.2% from $8.59 million in the prior-year quarter. QS lowered its 2026 capex guidance to $27-$37 million from $40-$60 million, reflecting capital discipline and savings on specific projects.

Strong Liquidity PositionNet cash used in operating activities improved to $56.75 million from $61.84 million a year ago. Customer billings totaled $21.8 million during the first half of 2026, surpassing the $19.5 million recorded for all of 2025.

QuantumScape ended June with $859 million in liquidity, comprising $132.87 million in cash and cash equivalents and $726.13 million in marketable securities. The balance sheet provides funding as the company scales the Eagle Line, develops larger-format cells and pursues commercialization across its three business verticals. 

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM ScoresAt this time, QuantumScape has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, QuantumScape has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerQuantumScape is part of the Zacks Automotive - Original Equipment industry. Over the past month, Autoliv, Inc. (ALV - Free Report) , a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended June 2026 more than a month ago.

Autoliv reported revenues of $2.8 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $2.43 for the same period compares with $2.21 a year ago.

Autoliv is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -4.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autoliv. Also, the stock has a VGM Score of A.

QuantumScape (QS +1.70%), a developer of solid-state batteries, went public through a merger with a special purpose acquisition company (SPAC) on Nov. 27, 2020. Before its market debut, it claimed it could commercialize its first batteries by 2024. It also claimed its revenue would surge from $14 million in 2024 to $275 million in 2026.

But as of this writing, QuantumScape has neither commercialized a single battery nor generated any meaningful revenue yet. That's why its stock, which opened at $24.80 on the first day, now trades at about $6. Can it finally achieve those goals this year and revive its ailing stock?

Image source: Getty Images.

Why did QuantumScape miss its original target? QuantumScape's solid-state batteries use solid electrolytes instead of the liquid electrolytes used in conventional lithium-ion batteries. With higher charging capacities, shorter charging times, and better thermal resistance, they're well-suited for electric vehicles (EVs).

Its QSE-5 battery, which it's been co-developing with Volkswagen (OTC:VWAP.Y) for over a decade, has an energy density of 844 Wh/L (watt hours per liter) and can be charged from 10% to 80% in 12.2 minutes. Most lithium-ion batteries for EVs have a density of 300-700 Wh/L with an average charging time of 20 minutes to an hour.

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That sounds like a game changer for the EV market, but QuatnumScape's batteries are also more expensive and difficult to manufacture than their lithium-ion counterparts. A major technological hurdle is the mass production of its proprietary flexible ceramic separator, which prevents dendrites (microscopic lithium fibers) from short-circuiting the battery. In 2025, QuantumScape replaced its older Raptor separator process with its new Cobra separator process to boost its cell reliability, equipment productivity, and total yields. That move helped it ramp up its production of high-volume samples for automakers.

But it also abandoned its original goal of manufacturing its own batteries and licensed its technology to Volkswagen's PowerCo subsidiary and other automakers. So instead of operating capital-intensive manufacturing facilities, it aims to collect higher-margin royalties and licensing fees from its partners once it commercializes its first battery designs.

But when will that actually happen? In its second-quarter report on July 22, QuantumScape said its automotive batteries wouldn't achieve commercial readiness until 2029. Therefore, investors shouldn't put any faith in Wall Street's outdated expectations for the company to start generating revenue in 2027 and 2028.

QuantumScape already has a market cap of $3.8 billion, and it will incur hundreds of millions in net losses every year until it finally launches its first commercial designs. It will remain a volatile and speculative stock, and it could easily be cut in half (or more) in the next market crash.

Posted by Defense World Staff on Aug 5th, 2026

Dimensional Fund Advisors LP increased its stake in shares of QuantumScape Corporation (NYSE:QS – Free Report) by 134.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,735,035 shares of the company’s stock after buying an additional 3,290,942 shares during the quarter. Dimensional Fund Advisors LP owned about 0.93% of QuantumScape worth $36,570,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Morgan Stanley lifted its holdings in shares of QuantumScape by 333.5% during the fourth quarter. Morgan Stanley now owns 11,126,497 shares of the company’s stock worth $115,938,000 after purchasing an additional 8,559,554 shares during the period. Renaissance Technologies LLC acquired a new position in shares of QuantumScape in the 4th quarter valued at about $84,584,000. Vanguard Group Inc. boosted its stake in shares of QuantumScape by 11.8% in the fourth quarter. Vanguard Group Inc. now owns 40,959,061 shares of the company’s stock worth $426,793,000 after buying an additional 4,323,829 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of QuantumScape by 456.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,759,334 shares of the company’s stock worth $19,799,000 after buying an additional 3,904,168 shares during the last quarter. Finally, Man Group plc acquired a new stake in QuantumScape during the third quarter worth about $44,421,000. 29.87% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at QuantumScape In other news, Director Jeffrey B. Straubel sold 27,106 shares of QuantumScape stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $7.85, for a total value of $212,782.10. Following the sale, the director owned 131,298 shares in the company, valued at $1,030,689.30. This trade represents a 17.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Timothy Holme sold 150,320 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $9.30, for a total transaction of $1,397,976.00. Following the sale, the chief technology officer directly owned 1,712,506 shares of the company’s stock, valued at $15,926,305.80. This represents a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 687,540 shares of company stock valued at $5,573,615 over the last ninety days. Corporate insiders own 3.93% of the company’s stock.

Analyst Upgrades and Downgrades Separately, TD Cowen dropped their price objective on shares of QuantumScape from $8.00 to $6.00 and set a “hold” rating on the stock in a research note on Friday, July 24th. Five investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, QuantumScape has an average rating of “Reduce” and a consensus target price of $9.47.

Check Out Our Latest Stock Analysis on QuantumScape

QuantumScape Stock Performance Shares of QS stock opened at $5.69 on Wednesday. The company has a current ratio of 21.14, a quick ratio of 21.14 and a debt-to-equity ratio of 0.02. QuantumScape Corporation has a 12-month low of $4.77 and a 12-month high of $19.07. The business’s 50 day moving average is $6.95 and its two-hundred day moving average is $7.40. The company has a market capitalization of $3.52 billion, a P/E ratio of -7.02 and a beta of 2.61.

QuantumScape (NYSE:QS – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The company reported ($0.16) EPS for the quarter, beating analysts’ consensus estimates of ($0.18) by $0.02. During the same period in the previous year, the firm earned ($0.20) earnings per share. The firm’s revenue was up .0% compared to the same quarter last year. Analysts expect that QuantumScape Corporation will post -0.82 EPS for the current fiscal year.

QuantumScape Profile (Free Report)

QuantumScape Corporation is a development-stage company specializing in the research and commercialization of next-generation solid-state lithium-metal batteries for electric vehicles. The company’s core technology replaces the traditional liquid electrolyte with a solid ceramic separator, aiming to deliver higher energy density, faster charging times and enhanced safety compared to conventional lithium-ion cells. QuantumScape’s product roadmap focuses on enabling electric vehicle manufacturers to extend driving range and reduce charging downtime, addressing key barriers to widespread EV adoption.

Founded in 2010 and headquartered in San Jose, California, QuantumScape has attracted significant strategic investment and formed partnerships with leading automotive OEMs.

Read More Five stocks we like better than QuantumScape System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter Want to see what other hedge funds are holding QS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for QuantumScape Corporation (NYSE:QS – Free Report).

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QuantumScape (QS +5.44%) is researching and developing solid-state battery technology.

Why did QuantumScape's Q2 earnings beat turn into a 13% rout? Read on to know if it's a buying opportunity or time to exit.

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QuantumScape (NYSE:QS | QS Price Prediction) shares are down 14% to $5.03 in Thursday morning trading, extending a rough stretch for the solid-state battery developer. The move follows the company’s Q2 2026 earnings release after the July 22 close.

The selling is spreading across the small solid-state battery cohort. Solid Power (NASDAQ:SLDP) stock is down 8% to $2.15, and SES AI (NYSE:SES) shares are down 10% to $0.53.

The broader tape isn’t helping. For QuantumScape and its peers SLDP and SES, the S&P 500 is down 1.5% and the NASDAQ 100 is down 2.4% on Thursday, a risk-off backdrop that tends to punish high-beta, speculative names the hardest.

Post-Earnings Reaction Drives QuantumScape Lower QuantumScape posted a Q2 2026 net loss of approximately $98 million, or $0.16 per share, narrower than the $0.1781 loss analysts expected. The company reaffirmed its full-year 2026 adjusted EBITDA loss guidance of $250 million to $275 million while trimming capital-expenditure plans to $27 million to $37 million from a prior $40 million to $60 million range.

Beyond the numbers, QuantumScape broadened its focus beyond electric vehicles. Management highlighted a multi-year partnership with Honda Motor (NYSE:HMC) for solid-state lithium-metal battery technology, updated milestones with Volkswagen‘s (OTC:VWAGY) PowerCo unit, and initial QSE-5 cell shipments to a major American defense prime alongside engagement with AI data center design partners.

QuantumScape’s operating expenses also improved, falling to $106 million from $124 million a year ago, with research and development at $83 million. Customer billings reached $10.8 million in the quarter, per the 8-K filing.

The reaction looks like a classic sell-the-news response. QuantumScape stock was down 44% year to date (YTD) heading into Thursday, and even a headline EPS beat paired with a marquee Honda deal wasn’t enough to lift a name where investors want to see actual revenue.

Solid Power and SES AI Slide in Sympathy Solid Power has no company-specific catalyst today. The Colorado developer, which counts SK On, Samsung SDI, and BMW as partners, last reported Q1 2026 results in May and is targeting year-end 2026 commissioning of its continuous sulfide electrolyte pilot line. Solid Power shares are down 48% YTD.

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SES AI is trading like a pure sympathy name. The sub-$1 speculative stock has fallen 70% YTD, and with a market cap of around $200 million, SES stock tends to move sharply on any shift in sentiment across the solid-state cohort.

Balancing the Bull and Bear Cases on QuantumScape The bear case on QuantumScape stock is straightforward: no near-term revenue, ongoing cash burn, and real execution risk on scaling the Eagle Line pilot facility and Cobra separator process. Liquidity of $859 million gives the company runway, but commercialization timelines in this industry have a habit of slipping.

The bull case rests on the technology itself and its widening addressable market. If QuantumScape’s anode-free lithium-metal architecture can be manufactured at scale, the pull from EVs, AI data centers approaching a megawatt of power per compute rack, and defense customers seeking supply chain independence from Chinese graphite could be substantial.

What to Watch Next The immediate technical level to watch on QuantumScape stock is whether it can hold the $5 level after breaking below $6 on Thursday. Follow-through selling in Solid Power and SES AI shares could signal that the sympathy trade has more room to run.

Analyst notes reacting to the Honda partnership and the lowered capex outlook may shape the next leg. The current sell-side setup on QuantumScape stock is cautious, with seven holds, two sells, and a $7.16 consensus price target.

Solid-state batteries remain a promising long-term technology, but these are speculative, unprofitable names dependent on manufacturing and commercialization milestones that keep slipping. Investors should consider keeping their position sizes modest given the volatility on display in QS, SLDP, and SES shares.

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Key Takeaways QuantumScape added Honda while expanding PowerCo work on larger-format cells and its roadmap.First-half billings reached $21.8 million, topping full-year 2025 billings of $19.5 million.QS aims to double cell output in the second half as Eagle Line tool uptime exceeds 90%. QuantumScape Corporation (QS - Free Report) used its second-quarter 2026 earnings call to shift investor attention away from a simple quarterly loss figure and toward commercialization milestones, customer expansion and new end markets. Management’s message was that the company is broadening the path to scale while keeping its core automotive plans intact.

That framing mattered because the quarter combined a narrower-than-expected loss with several strategic updates, including a Honda partnership, revised PowerCo milestones and a formal push into AI data centers and defense.

QS Lands a New Automotive PartnerPresident, CEO and director Siva Sivaram put the new Honda partnership at the top of the call. He described it as a multi-year agreement covering automotive and other applications in Honda’s portfolio, and he framed the deal as the result of a demanding technical evaluation.

Management also said it amended the ongoing collaboration and licensing arrangement with Volkswagen PowerCo, with the updated scope tied to automotive cell development, larger-format cells and the future technology roadmap.

Beyond Honda and PowerCo, Sivaram said QS is working with two other top-10 auto OEMs under joint development agreements and shipped cells to an additional automotive OEM during the quarter. That kept the automotive story centered on customer count, technical progress and paid relationships rather than near-term revenues.

QS Keeps the Financial Message NarrowChief financial officer Kevin Hettrich said second-quarter GAAP operating expenses were $106.1 million and GAAP net loss was $98.2 million, while adjusted EBITDA loss was $64.2 million. The company reported second-quarter loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents.

Hettrich reiterated full-year 2026 adjusted EBITDA loss guidance of $250 million to $275 million. He also lowered capital expenditure guidance to $27 million to $37 million from prior expectations, citing capital discipline and savings on specific projects.

Customer billings were another focus. Hettrich said second-quarter billings reached $10.8 million and first-half 2026 billings totaled $21.8 million, already above full-year 2025 billings of $19.5 million. He emphasized that billings can be lumpy, but management clearly wants investors tracking commercial traction through this metric.

QuantumScape Broadens the Addressable MarketQuantumScape also formalized three verticals: QSEV for electric vehicles, QSDC for AI data centers and QSAS for advanced solutions such as aerospace and defense. Sivaram said the same underlying technology stack can serve multiple markets, with different go-to-market models layered on top.

The AI data center pitch centered on rising rack power demands and the move toward 800-volt DC architectures. Management said QSDC is already working with original design manufacturers and data center architects on QSE-5-based solutions.

On the defense side, QSAS shipped QSE-5 cells to a major American defense prime. In Q&A, Sivaram added that advanced solutions also cover medical devices and consumer electronics, showing the company wants this unit to be a broader commercialization channel beyond autos.

QS Puts Eagle Line at the CenterThe Eagle Line remained the core operational proof point. Sivaram said the automated pilot line in San Jose is now showing core tool uptime above 90%, while key productivity metrics are meeting targets and sample shipments are ramping.

Management said it aims to double cell output again in the second half of 2026. That target matters because Eagle Line serves three functions at once: producing more customer samples, speeding process learning, and providing the manufacturing template for future scale-up and technology transfer.

In the analyst Q&A, Sivaram repeatedly tied future milestones, especially with PowerCo, back to Eagle Line execution. He said progress there is what determines how quickly QuantumScape can transfer its process to partners for larger-scale production.

QuantumScape Highlights Safety and RoadmapAnother notable management theme was safety. QuantumScape said broader testing on QSE-5 continued to support its argument that the cell design is safer than both conventional and next-generation lithium-ion approaches, with results spanning nail penetration, external short circuit, and thermal stability up to 300 degrees Celsius.

The company also pointed to progress on larger-area separators produced with its Cobra process. Management presented that as evidence that the technology can move beyond the current QSE-5 format toward higher-capacity cells with better packaging efficiency.

Analyst questions reinforced that these roadmap items now sit closer to the center of the PowerCo relationship. Sivaram said larger-format cells and advanced roadmap elements are part of the milestone set now guiding joint work.

QuantumScape Leaves Investors With a Broader PitchThe clearest takeaway from the call was that management wants QuantumScape judged on expanding commercialization options, not just on a single automotive timetable. Sivaram’s prepared remarks and Q&A answers consistently linked autos, AI infrastructure and defense to one common need: better batteries backed by a scalable production system.

At the same time, management did not back away from existing automotive goals. On Q&A, Sivaram said the 2029 production target tied to PowerCo remains unchanged, leaving the quarter’s message as one of addition rather than strategic replacement.

Zacks Signals Remain CautiousQS currently carries a Zacks Rank #4 (Sell), along with a Value Score of F, Growth Score of B, Momentum Score of A and VGM Score of C. Under the Zacks framework, the rank is the primary signal, while Style Scores work best as a complement rather than a substitute.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

That combination points to mixed style characteristics, with stronger growth and momentum traits offset by weak value measures, but the rank keeps the overall signal cautious. The Zacks framework also notes that the rank can change as earnings estimate revisions adjust after results, so that assessment is not fixed.

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