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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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MarketBeat Week in Review – 06/29 - 07/03QuantumScape NYSE: QS said it made progress in the second quarter of 2026 on automotive commercialization, new end-market expansion and pilot production of its solid-state lithium-metal battery cells, while reiterating its full-year adjusted EBITDA loss guidance.

On the company’s earnings call, Chief Executive Officer Siva Sivaram highlighted a newly announced multi-year partnership with Honda aimed at advancing QuantumScape’s solid-state lithium-metal battery technology for automotive and other applications in Honda’s product portfolio. Sivaram said the agreement followed “one of the most rigorous assessments of our technology to date” and gives QuantumScape another pathway into high-value markets.

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Burger King’s Turnaround Is Putting Restaurant Brands Back in FocusThe company also updated its ongoing collaboration and licensing arrangement with Volkswagen’s PowerCo. Sivaram said the revised scope includes milestones and payments tied to automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. He added that the relationship remains strong and that the overall goal is unchanged: industrializing QuantumScape’s technology and transferring it to PowerCo for automotive commercialization.

Automotive Partnerships Remain Central to Commercialization Sivaram said QuantumScape is working with four of the top 10 global automotive original equipment manufacturers, including Volkswagen and Honda. The company also shipped cells to an additional automotive OEM customer during the quarter and continues to strengthen relationships with automakers in North America, Europe and Japan.

Slice of the Pie: Why Yum’s Deal Lifts QSRAsked about the updated PowerCo agreement, Sivaram said QuantumScape has updated the Volkswagen PowerCo agreements annually as the relationship has progressed. “There is not anything philosophically different about the objectives of the joint program,” he said, adding that the milestones are now aligned with items such as larger-format cells and future technology work.

Chief Financial Officer Kevin Hettrich said the revised PowerCo scope reduced the total possible payments under the agreement from approximately $131 million to approximately $75 million, but also lowered expected project expenses. He said QuantumScape expects a “net neutral financial impact in terms of cash” compared with the 2025 scope of work. Hettrich also said the separate $130 million royalty prepayment from PowerCo is unchanged and is tied to technical milestones and alignment on form factor.

When asked whether Volkswagen PowerCo’s previously discussed 2029 start-of-production timeline remained the target, Sivaram said QuantumScape had not announced any change from its original plans.

Company Creates Three Business Verticals QuantumScape said it is organizing around three business verticals to address automotive and non-automotive markets:

QSEV, focused on electric vehicles and automotive OEMs, including Volkswagen and Honda. QSDC, focused on AI data centers and working with original design manufacturers and data center architects. QSAS, focused on advanced solutions, including aerospace and defense applications. Sivaram said the company sees interest in its technology beyond electric vehicles, including AI data centers, aerospace, defense, consumer electronics and medical devices. He said the core QuantumScape technology platform can serve these markets, though each may require a different go-to-market strategy.

For data centers, Sivaram said the market is moving quickly and that QuantumScape is working with data center architects and ODMs on designs based on QSE-5 technology. He said the transition to 800-volt DC designs and megawatt racks creates “natural deadlines,” with deployments expected toward the end of 2028, meaning QuantumScape needs to develop and deliver integrated products ahead of that timeframe.

In advanced solutions, Sivaram said QSAS has shipped QSE-5 cells to a major American defense prime and is engaged with global customers across aerospace and defense. He said the advanced solutions business will also explore opportunities such as medical devices and consumer electronics.

Eagle Line Ramps Cell Output QuantumScape said its Eagle Line, a highly automated pilot cell production line in San Jose, California, remains a key part of its commercialization strategy. Sivaram said the line is intended to increase sample volumes for customers, accelerate process development and serve as a proving ground for scaling production.

The company said core tools on the Eagle Line are showing uptime greater than 90%, while key productivity metrics are meeting targets. QuantumScape is ramping sample volumes and shipping cells to customers. Sivaram said the company aims to further double cell output in the second half of 2026 and expects customer sample shipments to accelerate across all three verticals.

In response to a question about shipments to the defense market, Sivaram said improved Eagle Line productivity enabled the company to ship QSE-5 cells to a U.S. defense prime. He said the higher volumes also help QuantumScape learn more quickly and support eventual technology transfer to higher-volume lines.

Safety and Larger-Format Cells Highlighted Sivaram said customers have consistently identified safety as a valuable aspect of QuantumScape’s technology, in addition to energy density and power capability. He contrasted the company’s ceramic separator with next-generation approaches involving silicon or lithium-metal anodes with liquid electrolytes, which he said can pose serious safety hazards.

QuantumScape said increased Eagle Line output is enabling larger-scale safety testing, including nail penetration, external short circuit and thermal stability testing up to 300 degrees Celsius. Sivaram said the results continue to show QSE-5 as “a significantly safer cell design” compared with conventional and next-generation lithium-ion cells.

The company also said it has demonstrated that its Cobra process can produce larger-area separators for higher-capacity cell designs. Sivaram said larger-format cells can improve packing efficiency and potentially increase cell-level energy density.

Financial Results and Outlook For the second quarter, QuantumScape reported GAAP operating expenses of $106.1 million and a GAAP net loss of $98.2 million. Adjusted EBITDA loss was $64.2 million, which Hettrich said was in line with expectations.

The company reiterated its full-year 2026 adjusted EBITDA loss guidance of $250 million to $275 million. QuantumScape lowered its full-year capital expenditure guidance to a range of $27 million to $37 million, citing capital discipline and cost savings on specific projects. Second-quarter capital expenditures were $4.6 million, primarily related to technology roadmap investment and associated facility spending.

Hettrich said customer billings in the second quarter were $10.8 million, bringing total customer billings through the first half of 2026 to $21.8 million. That exceeded full-year 2025 customer billings of $19.5 million, meeting the company’s public goal for 2026. He noted that customer billings represent invoices issued to customers and partners regardless of accounting treatment and are not a substitute for revenue under U.S. GAAP.

QuantumScape ended the quarter with $859 million in liquidity. Hettrich said the company will remain prudent with its balance sheet as it invests in commercialization, new markets and technology development.

About QuantumScape (NYSE:QS)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.

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].

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QS stock is moving. Watch the price action here. QuantumScape Q2 Details     QuantumScape reported quarterly losses of 16 cents per share, which beat the analyst consensus estimate for losses of 18 cents, according to Benzinga Pro data. 

Customer billings came in at $10.8 million for the quarter, representing the total value of invoices issued to customers and partners, regardless of accounting treatment; this metric may fluctuate quarter to quarter as engagement activity progresses.  

Capital expenditures totaled $4.6 million for the quarter, driven mainly by investments in the company’s technology roadmap and related facility spending.

For full-year 2026, capex guidance has been lowered to $27 million to $37 million, reflecting tighter capital discipline and cost savings on select projects.

QS Stock Price Activity: According to data from Benzinga Pro, QuantumScape stock fell 4.60% to $5.60 in Wednesday’s extended trading.  

Photo: Courtesy QuantumScape

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QuantumScape stock NASDAQ:QS faces a potentially sharp earnings reaction on Wednesday as investors test whether the solid-state battery developer can turn technical progress into a credible manufacturing and commercialisation plan.

Options traders are pricing a move of roughly 12% to 15% in either direction after the second-quarter report, reflecting the uncertainty surrounding a company that still generates little conventional revenue.

QuantumScape ended Friday at $5.86 and will release results after the market closes on July 22, followed by a call at 5 pm ET.

Options-market data suggests QuantumScape shares could move roughly 12% to 15% in either direction after the earnings release, with the estimate shifting alongside the stock price and option premiums.

The difference reflects changing share prices and option premiums, rather than conflicting directional forecasts.

An implied move does not mean traders expect QuantumScape to rally.

Stronger manufacturing disclosures could lift the stock sharply, while delays, vague targets or rising spending could produce a similar decline.

The first-quarter reaction showed that sensitivity. Shares initially surged 23% after the April update before surrendering most gains and closing only 1.4% higher.

MarketWatch noted that heavy short interest and a large retail following may amplify price swings.

Evercore ISI analyst Chris McNally said that QuantumScape had not announced the “completion of any goals”, although it showed progress across several areas.

He had also highlighted a previous “dearth of new headlines”, increasing the importance of each quarterly update.

The central question is whether the Eagle Line pilot facility is becoming a reliable manufacturing operation.

QuantumScape said in April that installation had been completed and start-up activities had begun, with initial QSE-5 cells being produced.

Management planned to increase output during the second quarter while improving equipment uptime, throughput, process stability and cell reliability.

The line is the bridge between successful laboratory cells and batteries that can be reproduced consistently enough for automotive testing and eventual mass production.

Investors will therefore want measurable disclosures on cell output, yields, equipment availability, customer shipments and testing results.

Broad assurances may not be enough as QuantumScape’s valuation rests largely on future commercialisation, making operational milestones more useful than conventional earnings comparisons.

Customer validation offers the clearest bullish catalyst.

QuantumScape signed a multi-year research agreement with Honda R&D in June after the Japanese group completed a technical evaluation and benchmarking programme.

Updates showing that Honda, Volkswagen’s PowerCo or other carmakers are advancing towards broader testing or firmer commitments would strengthen confidence.

The company recorded $11 million of customer billings in the first quarter and ended March with $905 million of liquidity.

It maintained full-year guidance for an adjusted EBITDA loss of $250 million to $275 million and capital expenditure of $40 million to $60 million.

Any increase could revive concerns about how much funding commercialisation will require.

UBS analyst Joseph Spak wrote in comments reported by MarketWatch that QuantumScape’s “2026 goals seem more ambiguous than last year”, making completion difficult to judge.

He also questioned whether expansion into data centres and robotics could dilute management’s automotive focus.

Key Takeaways QS is set to report second-quarter 2026 results on July 22, after the closing bell.QuantumScape remains pre-revenue, with partner payments tied to technical milestones.QS reiterated a 2026 adjusted EBITDA loss outlook of $250-$275 million amid ongoing spending. QuantumScape Company (QS - Free Report) is slated to release second-quarter 2026 results on July 22, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share is pegged at 18 cents.

For the second quarter, the consensus estimate for QuantumScape’s loss has widened by a penny over the past 90 days. Its bottom-line estimates imply a growth of 10% from the year-ago reported numbers.

The company's earnings beat estimates in one of the trailing four quarters, matched twice and missed once, delivering an average surprise of 1.22%. This is depicted in the graph below:

Q1 HighlightsIn the first quarter of 2026, QuantumScape reported a loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. It delivered an earnings surprise of 11.1%. The quarter also showed improving year-over-year performance, with loss per share narrowing from 21 cents in the year-ago period.

Things to NoteQuantumScape remains pre-revenue and does not provide GAAP revenue guidance, so near-term monetization can be volatile. The company’s customer billings metric is non-GAAP and can swing with activity. PowerCo’s project contributions are tied to technical milestones, and the company reported no such payments in the first quarter. This structure could lead to periods of limited recognized revenue despite ongoing activity, reducing financial clarity and increasing short-term earnings unpredictability.

The company reiterated full-year 2026 adjusted EBITDA loss guidance of $250-$275 million, indicating that meaningful profitability remains distant. In the first quarter of 2026, GAAP net loss was $100.8 million, reflecting continued spending to ramp the pilot line and advance product development. Even with customer billings, the accounting treatment and timing of partner payments may not align with the expense run-rate. Until higher-volume shipments and licensing economics begin to scale, losses are likely to persist.

Limited revenue visibility and expected EBITDA losses are likely to weigh on the company’s second-quarter results.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for QuantumScape for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.

Earnings ESP: QS has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #4 (Sell).

Stocks With the Favorable CombinationHere are a few players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Gentex Corporation (GNTX - Free Report) is slated to release second-quarter 2026 results on July 24. The company has an Earnings ESP of +0.67% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GNTX’s to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $669 million.

Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on August 4. The company has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.34 per share and $9.33 billion.

BorgWarner Inc. (BWA - Free Report) is slated to release second-quarter 2026 results on August 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion.

QuantumScape Corp (NASDAQ:QS) shares are trading higher by almost 6% on Thursday as risk appetite stays firm and traders lean into higher-beta names.

QuantumScape shares are powering higher. Why is QS stock up today? Critical Price Levels To Watch For QSEven with Thursday’s bounce, QS is still trading below its key moving averages: about 2.9% below the 20-day SMA ($7.22), 9.2% below the 50-day SMA ($7.71), and 29.4% below the 200-day SMA ($9.93). That keeps the bigger-picture trend pressured, especially after the death cross in February (50-day SMA below the 200-day SMA).

Momentum is best framed through RSI, which sits at 45.01—neutral territory that suggests the stock isn’t stretched, but also isn’t showing strong upside momentum yet. In practice, that often lines up with choppy rebounds that need follow-through above nearby resistance to turn into a trend.

Key Resistance: $7.50 — a nearby round-number area that also sits close to the 50-day EMA ($7.52), where rebounds can stall Key Support: $6.50 — a nearby floor that’s been close enough to matter as a recent "buyers step in" zone, above the $5.90 52-week low Honda Partnership Expands QuantumScape’s OpportunityIn late June, QuantumScape and Honda announced a joint research program focused on solid-state battery development and related manufacturing processes, giving QS a broader platform technology narrative beyond passenger EV battery packs.

Honda could eventually use QuantumScape’s technology across motorcycles, scooters, industrial equipment, backup power, marine engines and stationary storage, where fast charging, higher energy density and safety could matter.

Meanwhile, higher-margin deployments could help Honda and QuantumScape test manufacturing, integration and safety before scaling into mass-market EVs.

QuantumScape Earnings Preview for July 2026The countdown is on: QuantumScape is set to report earnings on July 22, 2026 (confirmed).

EPS Estimate: Loss of 18 cents (Up from a loss of 20 cents YoY) Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $8.93. Recent analyst moves include:

Evercore ISI Group: In-Line (Lowers Target to $10.00) (Feb. 23) HSBC: Upgraded to Hold (Lowers Target to $8.30) (Feb. 19) Morgan Stanley: Equal-Weight (Lowers Target to $8.50) (Feb. 18) QS Stock Price Movement on ThursdayQS Stock Price Activity: QuantumScape shares were up 6.03% at $7.03 at the time of publication on Thursday, according to Benzinga Pro data.

Image: Courtesy of QuantumScape

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Our Top Stock Picks of 2026 had a strong second quarter

Managing Editor

Jul 7, 2026 at 1:05 PM

More than half of our Top Stock Picks for the year are in the black halfway through 2026

Subscribers to our Substack, The Contrarian Edge, received this commentary on Sunday, July 5 .

Yesterday, nervous ahead of the U.S.-Bosnia Round of 32 game, I passed the time by performing by auditing the last quarter and checking my 2026 goals. What initially felt like an insurmountable task turned into a 20-minute exercise that provided clarity on the months ahead.

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Overall, halfway through the year, nine of the 15 stocks are in the black, and the equal-weighted return of the entire report sits at 21%. In Q1, it was -0.2%.

Velo3D Inc (NASDAQ:VELO)

One of my favorite banter rebuttals is ‘I’m never wrong, just early.’ VELO is the poster child for that. My exact words, back on April 2, were ‘watch this space for a melt-up.’ The 3D-printing stock bounced off a stable floor at $10, an area – we called as a floor -- that roughly coincides with its 100-day moving average. Then, a 49.4% post-earnings explosion from May 13 reset expectations, with the Velo trading as high as $31.75 on June 11.

The shares have since come back down to earth from there, finishing June with a 27% drawdown. So far though, the 80-day trendline is stepping up, an ‘overbought’ condition is getting worked off, and 25% of the stock’s total available float is sold short. Time to double down and call that VELO is coiling up for its next unwind higher.

CRISPR Therapeutics AG (NASDAQ:CRSP)

The gene-editing staple has added 7% in the first two days of July and is currently trading at its highest level since March 4. Keep an eye on the 14-day Relative Strength Index (RSI) creeping up to 75, but with nearly 30% of its total available float sold short, CRSP is one post-earnings pop away from entering another stratosphere.

IonQ Inc (NYSE:IONQ)

IonQ made up for lost time, adding over 113% in April and May, thanks in large part to the Trump administration backing quantum computing. What’s crazy about that two-month run is sandwiched between it is a 9.3% post-earnings selloff on May 7. Watch for round-number $50 during this inevitable rotation.

Quick Thoughts on the Other Big Winners

DigitalOcean (DOCN) and Nebius Group NV (NBIS) are doing most if not all of the heavy lifting. Both stocks are off their June peaks, testing key support, and are heavily shorted.

Facing the Music with the Laggards

QuantumScape Corp (NASDAQ:QS) has never really gotten off the bus this year. Seven-straight weekly wins from April through May was then followed by a 15.8% loss in June. A top-line beat from the lithium battery producer only resulted in a muted 1.2% post-earnings move, and the trendline from November highs to the 2026 peak in June is firmly intact. Per the chart below, maybe a floor at $7 steps up, and there’s still massive short squeeze potential.

Agnico Eagle Mines (AEM) is what happens when you tie yourself to a commodity. Gold was the darling of Q1 but has completely shut down since, and stocks like AEM paid the price.

Cue the Bon Jovi. We’re halfway there, and there’s only one question to ask: do you believe this is a top, or not? If you do, then the AI trade has had its 15 minutes of fame, and all of these high-beta growth names are going to come crashing down. If that’s the case, the likes of AEM, consumer cyclical Colgate-Palmolive (CL), and Dollar Tree (DLTR) will be there to pick up the slack.

But if you view the recent volatility as a natural shaking out of weaker hands and profit taking, then there are plenty of contrarian plays with potential still to unwind.

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QuantumScape (QS 0.40%), a developer of solid-state batteries, went public through a merger with a special-purpose acquisition company (SPAC) on Nov. 27, 2020. Its stock started trading at $24.80 and skyrocketed to an all-time high of $131.67 on Dec. 22, 2020.

Unfortunately, QuantumScape missed its goal of commercializing its first batteries by 2024, didn't generate any meaningful revenue, and racked up steep losses. That's why its stock now trades at about $7. But could it eventually bounce back as the EV market expands and evolves?

Image source: Getty Images.

What's QuantumScape's long-term plan? QuantumScape's solid-state batteries run on solid electrolytes rather than the liquid electrolytes used in lithium-ion batteries. That difference gives them greater stability, better thermal resistance, higher charging capacities, and shorter charging times.

QuantumScape has been co-developing its batteries with Volkswagen (OTC:VWAP.Y) over the past decade. Its latest QSE-5 battery has a cell-level density of 844 Wh/L (watt hours per liter) and can be rapidly charged from 10% to 80% in under 15 minutes.

By comparison, Tesla's (TSLA +2.23%) in-house lithium-ion batteries have a cell-level density of about 650 Wh/L and require 30-45 minutes for a full charge. In theory, QuantumScape's solid-state batteries could represent a major leap forward for the EV market. In reality, solid-state batteries are pricier and more difficult to manufacture than lithium-ion batteries.

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That's why QuantumScape abandoned its original plan of manufacturing its own batteries in 2024 and agreed to license its technology to Volkswagen's PowerCo subsidiary and other automakers instead. Those higher-margin licensing fees and royalties could eventually help it break even, but it doesn't expect to commercialize its first designs (in low volumes) until 2027.

For now, QuantumScape is manufacturing higher-volume, near-production "B-sample" cells at its Eagle Line using its new Cobra separator process. If these samples are well-received, they could support the expansion of its commercial licensing business. It won't generate any revenue until that happens, but it expects its current cash runway to last through 2029.

Is it the right time to buy QuantumScape? If QuantumScape successfully launches its first commercial designs, analysts expect its revenue to rise from zero in 2026 to $99 million in 2028. Its stock might seem expensive at 47 times its 2028 sales, but the solid-state battery market could expand at a 47.6% CAGR from 2026 to 2034, according to Fortune Business Insights. If QuantumScape maintains its early mover's advantage in that nascent market, its sales and profits could skyrocket. Therefore, this speculative stock might be worth nibbling on today before it attracts a lot more attention.

Quantumscape Corp (NYSE:QS) shares surged about 15% on Thursday after the solid-state battery developer announced a joint research agreement with Honda Motor (NYSE:HMC) subsidiary Honda R&D Co Ltd to advance its battery technology platform.

The multi-year collaboration will focus on solid-state battery development and related manufacturing processes, combining the expertise of both companies.

The agreement follows Honda's completion of a technology evaluation program with QuantumScape that included an in-depth assessment of the company's solid-state battery platform and benchmarking against competing technologies through a series of standard technical tests.

"QS technology demonstrated compelling and unique advantages during our evaluation," Atsushi Ogawa, chief operating officer of Honda R&D's Research Center of Excellence, said in a statement.

He added that the company sees potential for the technology across multiple applications, including automotive uses.

QuantumScape CEO Siva Sivaram said Honda's assessment represented "one of the most rigorous evaluations of our technology to date."

“This agreement reflects the growing confidence in QS solid-state lithium-metal batteries to enable safer, higher-density energy storage,” Sivaram said.

The company develops solid-state lithium-metal batteries, which are viewed as a potential alternative to conventional lithium-ion batteries due to their potential for higher energy density and improved safety characteristics.

The joint research agreement includes a multi-year plan focused on solid-state battery development and associated manufacturing processes. The deal follows Honda’s successful completion of a technology evaluation agreement with QuantumScape, which included an in-depth, hands-on technical study of the company’s solid-state technology platform as well as competitive benchmarking across a range of standard technical tests.

“QS technology demonstrated compelling and unique advantages during our evaluation,” said Atsushi Ogawa, COO of Honda R&D’s Research Center of Excellence. “We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership.”

QuantumScope Shares SurgeQS Price Action: At the time of publication, QuantumScope shares are trading 6.81% higher at $7.37, according to data from Benzinga Pro.

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Solid-state battery maker QuantumScape (QS +16.52%) has been moving closer to commercializing its technology, and it received a major boost of confidence from a global automaker today.

News that the research and development (R&D) arm of Honda Motor (HMC +0.27%) is working with QuantumScape to advance its battery platform for electric vehicles (EVs) and other applications sent QuantumScape stock soaring today. As of 11:21, shares were up 12.9% after paring some of an earlier 16% gain.

Image source: The Motley Fool.

Massive market opportunity QuantumScape's technology could revolutionize EV batteries. It's not the only company working on solid-state batteries, though, so a partnership with Honda is meaningful for investors hoping to choose a winner in the race to commercialization. That has people buying the stock today.

Honda R&D COO praised QuantumScape, stating, "We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership."

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That's quite a vote of confidence from a major auto company, and gives investors insight into just how big the market could be for QuantumScape and others developing solid-state batteries. Electric cars, motorcycles, power tools, and generators are all Honda products that could utilize the batteries.

Investors see the potential and are betting on QuantumScape stock today. Those who do should know that it's still speculative, so allocate accordingly, as the risk remains high.

Howard Smith has positions in QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

QuantumScape QS shares are ripping higher on June 18th as investors react to a major new OEM partnership.

The solid-state battery pioneer announced a multi-year joint research agreement with Honda R&D to co-develop next-gen lithium-metal battery platform architectures and manufacturing processes.

And while QuantumScape stock is already up some 15% following the announcement, a solid case can be made that longer-term implications of this agreement are far more bullish than the market realizes.

The Honda partnership is particularly bullish for QS shares because it isn’t just an “exploratory” memorandum of understanding (MoU).

In fact, the joint research deal actually follows the successful completion of a formal technology evaluation agreement; the Japanese conglomerate conducted hands-on technical studies and competitive benchmarking.

For an OEM like Honda to explicitly say the technology demonstrated “compelling and unique advantages” means QuantumScape’s solid-state lithium-metal platform passed a highly restrictive gauntlet.

Honda’s validation shifts QS from the realm of “speculative” lab tech into a commercially vetted asset.

Passing a legacy titan’s strict benchmarking proves that the firm’s proprietary ceramic separator can handle real-world stress, effectively de-risking the tech in the eyes of the broader automotive industry.

Until recently, the major bear case against QuantumScape shares was its heavy reliance on the Volkswagen (via PowerCo).

By bringing Honda officially into a multi-year development and manufacturing process plan, QS proves it can capture multiple global OEMs; it transforms the company from a VW-captive project into a true independent industry standard-bearer.

A subtle but vital note in the press release came from Atsushi Ogawa (COO of Honda R&D), who said there’s potential “across a range of applications, including automotive.”

Honda is a powerhouse in motorcycles, aviation (HondaJet), and power equipment, and solid-state benefits – higher energy density, lower weight, and rapid charging – are arguably more valuable in aviation and small-scale mobility than standard passenger vehicles.

This dramatically widens QuantumScape’s total addressable market and positions the company as a cross‑sector electrification supplier rather than a single‑OEM battery bet.

Ultimately, the Honda agreement represents a fundamental pivot point for QS stock, lifting it out of its single-customer silo and validating its tech on a global stage.

The market is currently treating this as a fleeting, headline-driven momentum, but the structural implications run far deeper.

By proving its proprietary tech can meet the stringent demands of multiple top-tier OEMs – and unlocking massive potential addressable markets in aviation and micro-mobility – QuantumScape is effectively rewriting its long-term bull case.

For investors looking past the immediate double-digit rally, this partnership sets a resilient new floor for the company’s valuation as next-gen electrification edges closer to commercial reality.

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QuantumScape (QS +16.52%), a solid-state battery developer for EVs, closed at $8.04, up 16.52%. Shares rose after the announcement of a new joint research agreement with Honda (HMC +0.27%) focused on development and manufacturing processes. Investors are also watching for the late-July earnings window and the company’s commercialization strategy.
Trading volume reached 79.0M shares, coming in about 271% above its three-month average of 21.3M shares. QuantumScape IPO'd in 2020 and has fallen 19% since going public.

How the markets moved todayThe S&P 500 (^GSPC +1.08%) closed at 7,501, up 1.08%, while the Nasdaq Composite (^IXIC +1.91%) closed at 26,518, up 1.91%. Among advanced battery technology peers, Solid Power (SLDP +6.30%) closed at $2.87, up 6.30%, while lithium producer Albemarle (ALB 3.73%) closed at $160.35, down 3.73%.

What this means for investorsQuantumScape will be teaming up with Honda on a new joint research program for its solid-state battery technology. As QuantumScape advances toward validation of the technology and manufacturing capability at scale, investors are gaining optimism about the total addressable market.

Honda isn’t just an automaker; as a partner, it could be a solid-state battery customer for its power equipment as well as for electric cars and motorcycles.

QuantumScape also has a partnership with Volkswagen (VWAGY 0.90%). Earlier this year, QuantumScape debuted a Ducati motorcycle featuring its battery technology. Ducati is part of Volkswagen’s Audi division.

Investors were scooping up QuantumScape shares today, seeing more opportunity beyond EVs once it fully commercializes its solid-state batteries.

Howard Smith has positions in QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investors often weigh the stability of established industrial leaders against the explosive potential of development-stage disruptors. Choosing between Corning (GLW +4.06%) and QuantumScape (QS +1.90%) highlights the trade-off between realized profits and speculative breakthroughs.

Corning dominates the market for specialized glass and fiber optics, providing essential hardware for the artificial intelligence and telecommunications industries. QuantumScape is focused on perfecting solid-state lithium-metal batteries to transform the electric vehicle market. Both companies are vital to the future of connectivity and transportation but operate at different levels of maturity.

The case for CorningCorning dominates the market for specialized glass and fiber optics through its materials-science expertise. Its operations span optical communications, display technologies, and automotive applications, serving a wide array of global manufacturers. Customer concentration adds a layer of risk to the business, as three buyers account for roughly 61% of automotive sales and two customers represent 28% of optical revenue.

In FY 2025, revenue reached nearly $15.6 billion, a significant jump from roughly $13.1 billion in the prior year. Net income for the period was close to $1.6 billion, representing a net margin (the percentage of revenue kept as profit) of approximately 10.2%. This growth reflects strong demand for the specialized glass used in high-tech displays and communication networks.

As of its December 2025 balance sheet, the current ratio was nearly 1.6x, indicating the company has $1.60 in current assets for every $1.00 in liabilities due within a year. Corning remains a bellwether among tech stocks due to its role in building digital communication backbones. The debt-to-equity ratio of 0.9x indicates that total debt is slightly less than the total shareholder equity.

The case for QuantumScapeQuantumScape is developing solid-state lithium-metal batteries intended to replace standard lithium-ion packs in electric vehicles. Its primary goal is to improve battery safety, range, and charging speeds for the automotive sector. The company is significantly dependent on Volkswagen and its subsidiary, PowerCo, which serves as its primary partner for industrializing this technology.

In FY 2025, the company generated $0.0 in revenue as it remained in its development and testing phase. It reported a net loss of nearly $435.1 million during the same period. This loss is expected for a pre-revenue company that focuses entirely on research and development rather than commercial sales.

As of the December 2025 balance sheet, the current ratio was roughly 15.9x. This high ratio shows a significant amount of cash on hand relative to short-term liabilities, which are debts due within twelve months. The debt-to-equity ratio was close to 0.1x, meaning total debt is very low compared to the value of shareholder equity.

Risk profile comparisonCorning faces risks from its concentrated customer base, where the loss of a single major buyer could significantly impact its cash flows. It faces intense competition from global manufacturers like Samsung and Coherent (COHR +7.48%), which creates constant pricing pressure. Geopolitical risks also exist because many of its manufacturing facilities are located in the Asia Pacific region, making it vulnerable to trade disruptions.

QuantumScape must overcome significant technical and production-scale hurdles before achieving commercial viability. It competes with established lithium-ion manufacturers like Panasonic and Tesla (TSLA +0.98%) , which already benefit from massive economies of scale. Global trade tensions between the United States and China could also disrupt its access to the critical materials needed for battery production.

Valuation comparisonCorning provides the stability of a profitable manufacturer, while QuantumScape trades at a valuation that reflects high expectations for its future battery technology and earnings estimates.

MetricCorningQuantumScapeSector BenchmarkForward P/E56.2x299.9x32.2xP/S ratio9.9xn/aSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

These two companies may seem like an unusual pairing, but they represent two very different ways to invest in emerging technologies. One is a centuries-old manufacturer finding new growth opportunities in artificial intelligence infrastructure, while the other is a speculative bet on the future of solid-state batteries. So, which is the better buy for 2026?

Corning is a very old company (founded in 1851) that has pivoted from manufacturing Edison light bulbs to silica glass and TV tubes, and now to laptop screens and fiber-optic components used in AI infrastructure. It maintains a diverse portfolio of businesses and products today, including specialty glass, clean energy infrastructure, semiconductor components, and more.

And it is actually partnering with QuantumScape to provide ceramic technologies needed for the manufacture of solid-state batteries, which is an interesting fact to consider when comparing the two.

QuantumScape, for its part, offers significantly greater upside potential with its solid-state battery technology, intended to replace lithium-ion batteries used in electric vehicles today. However, it’s still pre-revenue and burning through capital as it continues research and development.

So, the choice between the two companies’ stock comes down to an investor’s risk tolerance. Those who are willing to bet on speculative growth may prefer QuantumScape. I would choose Corning. Its 175-year history demonstrates its remarkable ability to adapt to technological change and generate profits along the way.

QuantumScape (QS) shares climbed about 8% on Thursday as traders positioned for next week's earnings, while the battery developer still draws skepticism over re

© KTSDesign/SCIENCEPHOTOLIBRARY / Science Photo Library via Getty Images

QuantumScape (NYSE:QS | QS Price Prediction), the pre-revenue solid-state battery developer, used its Q4 2025 report to pair a narrow earnings beat with a strategic pivot: chasing AI data centers, robotics, aviation and defense as new markets for a battery that has yet to power a single commercial electric vehicle. Q1 EPS of -$0.16 eased past the -$0.18 consensus. Shares are rising 5.8% heading into noon trading, but are down 25.8% year-to-date, even as the stock remains up 94.35% over one year. Investors want to know whether the AI pivot is vision or distraction.

Q 2025 Earnings Scorecard Category Grade Key Insight Revenue Performance F Still zero product revenue; customer billings totaled $1 million, against a $4.7 billion market cap. Earnings Beat/Miss B Q1 EPS of -$0.16 beat consensus by 11.11%. Forward Guidance C 2026 adjusted EBITDA loss guided to $250M to $275M, roughly a 10% improvement, with capex rising to $40M to $60M. Profit Margins C+ Q1 operating loss narrowed 11.64% YoY to -$109.18 million; R&D fell roughly 11.5% to $84.57 million. Cash Generation C Q1 free cash flow of -$69.5 million worsened slightly from Q4, but total liquidity sits at $904.7 million, with cash down 37% YoY. Management Tone B CEO Siva Sivaram called the Eagle Line “will help drive a virtuous cycle” of growth while reframing QSE-5 as a fit for data centers where “you absolutely cannot have a fire with million-dollar GPUs.” Bottom Line Assessment Blended GPA lands near 2.3, roughly a C+. Verdict: Concerning to Hold. QuantumScape has not commercialized a battery in its primary EV market, yet is already positioning for AI, aviation and defense, a pattern that looks like chasing the next hot theme after EV demand cooled. The balance sheet buys time, and Wall Street agrees the risk-reward is balanced: zero Buy ratings, 7 Hold and 2 Sell, with a $7.41 consensus target implying -4.94% downside from current levels.

The single number to watch next quarter is customer billings; management expects an increase over 2025, and Eagle Line yield data will determine whether the AI pivot has technical substance or is purely narrative.

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QuantumScape (QS 2.63%), which develops solid-state lithium-metal battery technology for electric vehicles, closed Thursday at $7.41, up 1.37%. The stock moved higher after Q1 2026 results, and QuantumScape detailed Eagle production line progress. Investors are also watching how new AI and defense end markets could translate into commercial deals.
Trading volume reached 111.8 million shares, about 651% above its three-month average of 14.9 million shares. QuantumScape IPO'd in 2020 and has fallen 25% since going public.

How the markets moved todayThe S&P 500 (^GSPC +0.12%) fell 0.41% to 7,108, while the Nasdaq Composite (^IXIC 0.30%) lost 0.89% to finish at 24,439. Within battery and energy storage names, EnerSys (ENS +1.47%) closed at $207.80 (+2.72%) and Energizer (ENR +3.37%) ended at $19.96 (-0.30%) as investors weighed battery-demand trends across the industry.

What this means for investorsAfter soaring 32% in early trading, QuantumScape gave back almost all of those gains Thursday. QuantumScape reported a Q1 loss of $0.16 per share versus a $0.18 forecast, but that wasn’t the big news for investors.

The company is just beginning to ramp up its Eagle Line for QSE-5 solid-state battery cells. Automotive customers will be testing the cells with QuantumScape hoping to begin commercial production upon approvals.

Management also noted that it is now eyeing new markets for its battery technology. They include data centers, aerospace, and military. That may help explain why the company added former U.S. Air Force Chief Scientist Dr. Mark Maybury to its Strategic Advisory Board earlier this month. Investors should watch for more commentary related to these sectors.

Howard Smith has positions in QuantumScape. The Motley Fool has positions in and recommends EnerSys. The Motley Fool has a disclosure policy.

QuantumScape (NYSE:QS) executives highlighted progress on its automated pilot production line, early customer billings from ecosystem partners, and expanding interest beyond automotive during the company’s first-quarter 2026 earnings call.

Eagle Line installation completed; Q2 ramp planned CEO Dr. Siva Sivaram said the company completed installation of its “Eagle Line” in the first quarter and began startup operations. The Eagle Line is QuantumScape’s “highly automated pilot production line” intended to demonstrate scalable manufacturing of its solid-state lithium-metal battery technology.

According to Sivaram, QuantumScape is producing initial volumes of its QSE-5 cells and is focusing on improving “equipment uptime, line throughput, control systems, and process stability.” He added that the company has been integrating advanced AI models into the line and said it has seen “substantive progress on cell quality and reliability,” attributing improvements to faster and more consistent quality determinations using metrology data.

Looking ahead, Sivaram said QuantumScape plans to ramp QSE-5 production in the second quarter to support customer programs “across automotive and other applications.” Responding to Deutsche Bank’s Winnie Dong about the pace of the ramp, Sivaram said the company would begin ramping in Q2 and “continue to go up satisfying these demands through the rest of the year,” citing ongoing demand for samples from both automotive customers and prospective new markets.

Automotive remains core, with field testing the next phase Sivaram reiterated that EV development remains the company’s core focus and “largest source of customer billings.” He said QuantumScape continues to work closely with Volkswagen Group’s PowerCo and described “field testing” as the next step in the automotive commercialization roadmap, with cells from the Eagle Line expected to be tested under “real-world test conditions.”

During Q&A, Sivaram told William Blair’s Mark Shooter that field testing with Volkswagen will use the QSE-5 cell. He added that Volkswagen is also working with QuantumScape to design a cell for VW’s unified cell architecture, and he expects other OEMs will seek their own form factors. Sivaram said QuantumScape’s licensing model supports this flexibility because its separator can handle different form factors.

QuantumScape also described expanding engagement with additional automotive partners. Sivaram said the company shipped cells in Q1 to an automotive joint development agreement (JDA) partner for testing. He also said QuantumScape completed a technology evaluation with another top-10 global automotive OEM and is moving into joint development activities with the goal of deploying the technology in automotive and other applications.

In a later exchange, Sivaram said four of the world’s top 10 auto OEMs are “actively involved” with QuantumScape across North America, Japan, and Europe. He characterized customer progress as moving from evaluation to joint development and then toward licensing, with Volkswagen the most advanced. He also emphasized that the Eagle Line is important to supporting sampling and advancing customers toward licensing.

Ecosystem model produces first partner billings in Q1 Management also pointed to progress on its “QS ecosystem,” which the company describes as the foundation of its capital-light approach to scaling. Sivaram said QuantumScape continues working with Murata Manufacturing and Corning to scale production of its ceramic separator using the Cobra process. He added that ecosystem partners are investing in QuantumScape proprietary hardware and systems to produce the separator, which he framed as both a sign of commitment and “a source of customer billings.”

In Q1, QuantumScape recorded what it said were its first customer billings from ecosystem partners. CFO Kevin Hettrich called the milestone important for three reasons: it indicates partner investment in the technology platform, it provides an additional source of cash flow as the company transfers equipment and know-how while retaining ownership of core technology, and it supports longer-term plans for “ecosystem licensing payments and royalties.”

Hettrich and Sivaram both reiterated that “customer billings” is an operational metric that reflects the total value of invoices issued during the period “regardless of accounting treatment,” and that it is not a substitute for GAAP revenue.

New markets: AI data centers and defense-related demand Sivaram said QuantumScape sees its solid-state design as a fit for AI data centers, particularly as data centers shift toward 800-volt DC architectures and adopt power-system approaches from the EV industry. He pointed to the potential for higher energy density to increase compute density in “AI factories,” along with the importance of safety in higher-temperature environments where a fire could lead to significant damage and downtime.

In response to investor questions facilitated by IR head Sam Kamara, Sivaram said the AI data center opportunity is “early days” but “a great addition to our automotive portfolio,” citing market growth, product-market fit, and the company’s ability to create and capture value. He described AI workloads as demanding from a battery perspective and said QuantumScape’s technology could enable “last-meter power” delivery by placing energy storage closer to compute.

Sivaram also said QuantumScape is seeing strong interest from “global players in the military, aerospace, and government sectors,” citing a combination of energy density, power capability, and safety. He noted supply chain considerations as well, emphasizing QuantumScape’s graphite-free design compared with conventional lithium-ion batteries that rely on graphite “almost exclusively sourced from China.”

As the company staffs for these markets, Sivaram said QuantumScape added Ross Niebergall to its board and Dr. Mark Maybury as an advisor to help pursue opportunities in these areas. He also told analysts the company will ship samples from the Eagle Line to meet inbound interest.

Asked by HSBC’s Laisha Zaack whether new markets could affect automotive timelines, Sivaram said automotive remains a key focus and the company is “adding these additional markets to our automotive portfolio,” not shifting away from EV efforts. He said resourcing for these opportunities was included in the company’s annual operating plan, describing the approach as “not an either/or.”

Financial results: losses, guidance reiterated, liquidity near $905 million Hettrich reported GAAP operating expenses of $109.2 million and a GAAP net loss of $100.8 million in Q1. Adjusted EBITDA loss was $63.2 million, which he said was “in line with expectations.”

QuantumScape reiterated full-year 2026 guidance for an adjusted EBITDA loss of $250 million to $275 million. Capital expenditures were $10 million in the first quarter, “primarily composed of final payments related to the Eagle Line,” and the company reiterated its full-year CapEx guidance of $40 million to $60 million.

Customer billings were $11 million in Q1, which Hettrich said reflected “a mix of customer development activities and ecosystem partner payments.” In response to Goldman Sachs’ Ayush Ghosh (on for Mark Delaney), Hettrich noted that fiscal 2025 customer billings were approximately $19.5 million and said the company continues to guide to billings increasing year over year in 2026 versus 2025.

QuantumScape ended the quarter with $904.7 million in liquidity, and Hettrich said the company expects to remain “prudent” with its balance sheet.

About QuantumScape (NYSE:QS) 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.

Featured Articles Five stocks we like better than QuantumScape

Over the past decade, the electric vehicle (EV) market has grown rapidly as lower vehicle prices, improved charging infrastructure, and high gas prices drew in new customers. However, its growth is gradually cooling as governments rein in their EV subsidies; unpredictable tariffs, geopolitical conflicts, and supply chain constraints disrupt cross-border shipments; and inflation and elevated interest rates throttle consumer spending.

But from 2025 to 2030, Grand View Research expects the global EV market to grow at a 32.5% CAGR as cheaper, more power-efficient EVs enter the market. If you want to profit from that secular trend, you should buy these two oft-overlooked EV stocks -- BYD (BYDDY +0.62%) and QuantumScape (QS 2.63%) -- as the bulls look the other way.

Image source: Getty Images.

BYD BYD, China's largest automaker, is also the world's largest EV maker. It was originally a battery maker before it evolved into a diversified automaker. Still, its growth didn't accelerate until it stopped producing gas-powered vehicles in 2022 to aggressively expand its EV business. It sells both plug-in hybrid EVs (PHEVs) and battery-powered EVs (BEVs).

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From 2022 to 2025, BYD's annual vehicle sales surged from 1.9 million units to 4.6 million units, its revenue rose from 424 billion yuan ($118 billion) to 804 billion yuan ($118 billion), and its net income nearly doubled from 17 billion yuan ($5 billion) to 33 billion yuan ($5 billion).

BYD stood out in China's crowded EV market by leveraging its experience as a battery maker and producing its own lithium iron phosphate (LFP) batteries, which were safer, cheaper, and more power-efficient than conventional lithium-ion batteries. It also expanded its first-party supply chain by producing its own motors, chips, and power electronics, and it unified its production lines with its e-Platform 3.0 architecture across multiple vehicles. That vertical integration boosted its gross margins as production increased, and its profits grew.

From 2025 to 2028, analysts expect BYD's revenue and net income to grow at 12% and 23% CAGRs, respectively. That expansion should be supported by overseas growth in Southeast Asia, Europe, and Latin America; new AI features for its mid-range vehicles; increased production capacity; and upgrades for its fast-charging network across China. That's an impressive outlook for a stock that trades at just 17 times next year's earnings.

QuantumScape QuantumScape is a developer of solid-state lithium-metal batteries that provide better thermal stability, shorter charging times, and higher charging capacities than lithium-ion batteries.

Its QSE-5 battery, which it's been co-developing with Volkswagen (OTC:VWAP.Y) for more than a decade, has an energy density of 844 Wh/L (watt hours per liter) and can be quick-charged from 10% to 80% in under 15 minutes. Most lithium-ion batteries for EVs have an average energy density of 300-700 Wh/L and a fast-charging time of 20 minutes to an hour.

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QuantumScape initially planned to manufacture its own QSE-5 batteries through a joint venture with Volkswagen. In 2024, it abandoned its capital-intensive strategy and decided to license its technology to other battery makers to generate higher-margin royalties and licensing fees.

QuantumScape's batteries could make EVs much more efficient, but it hasn't commercialized any of its designs or generated any meaningful revenue yet. However, it's been upgrading its older Raptor separator process to its newer Cobra process over the past year to improve its cell reliability, productivity, and overall yields. That upgrade will enable QuantumScape to ramp up its production of higher-volume battery samples for Volkswagen and other automakers.

From 2026 to 2028, analysts expect QuantumScape's revenue to rise from nothing to $99 million as it finally licenses its first commercial QSE-5 batteries. With a market cap of $4.2 billion, it might seem overvalued at 42 times its 2028 sales. However, it could deserve that premium valuation if its solid-state batteries replace conventional lithium-ion batteries.

Rocket Lab stock NASDAQ:RKLB has become one of the market’s favorite regret trades.

It went public at $11.58, fell to a record low of $3.79 in 2022, and now trades around $84.65, after a long run built on launch execution, defense contracts and a growing backlog.

That is the kind of move investors look back on and say they should have seen coming.

The frustrating part is that Rocket Lab is no longer cheap, as analysts now see it as a company with real momentum, but also a stock priced for a lot of success already.

As per The Motley Fool analysis, the stock’s strong run reflects solid execution and growing demand, but also leaves limited room for error at current valuations.

Rocket Lab's rise came from repetition with 87 successful Electron launches, a long list of contracts with customers such as NASA, the US Space Force, BlackSky and Capella Space, and a steady shift from “interesting space company” to “real business with real demand.”

The company is still expected to grow fast, with analysts looking for revenue to rise from about $602 million in 2025 to $1.6 billion by 2028.

Even after that growth, though, the stock is trading at about 29 times those 2028 sales estimates, which leaves much less room for mistakes than it used to.

RKLB shows the kind of setup that can work extremely well: genuine technology, a market that is still early, and a business that keeps delivering enough proof points to pull in more institutional money.

The problem for anyone arriving late is that the easy part of the move may already be over.

Also read: Why selling these 3 dividend stocks could be a mistake

QuantumScape (NASDAQ: QS) is the cleaner “next Rocket Lab” story for investors who like long-dated technology bets.

The company is developing solid-state lithium-metal batteries that can charge from 10% to 80% in under 15 minutes and are designed to deliver 844 watt-hours per liter of energy density.

It has spent more than a decade developing batteries with Volkswagen, and it plans to license its first commercial designs by the end of 2026.

That commercialization milestone could become a major inflection point as analysts currently expect QuantumScape’s revenue to remain minimal in the near term before rising to roughly $48 million in 2027 and potentially surpassing $100 million in 2028.

The stock still looks like a distressed name.

QuantumScape trades around $7.95, below its 52-week high of $19.07 and only a little above its 52-week low of $3.80.

Plug Power (NASDAQ: PLUG) is the more established, more industrial version of the same idea.

It already has a commercial footprint, with more than 74,000 fuel cell systems deployed worldwide, and major customers include Amazon and Walmart.

Analysts expect revenue to rise from about $710 million in 2025 to $1.2 billion by 2028, while adjusted EBITDA is projected to turn positive in the final year of that period.

That is a much more tangible path to re-rating than a pure concept story.

Valuation is the other part of the appeal as Plug Power trades around $3.31, close to its lower trading band and well below its 52-week high of $4.58.

At roughly six times this year’s sales, it is far cheaper than Rocket Lab on a forward-sales basis and still far better known than QuantumScape.

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© Courtesy of QuantumScape

Shares of QuantumScape (NYSE:QS | QS Price Prediction) are up 7% in early Wednesday trading, pushing the stock to around $9 from a prior close of $8.42. The pop extends a sharp recovery for the solid-state battery developer, which has now rallied 32% over the past month.

The move follows fresh investor enthusiasm around the company’s Eagle Line pilot production facility and the early ramp of customer billings, two milestones that mark the most concrete step yet in QuantumScape’s transition from research to commercial manufacturing. QS stock is also up 97% over the past year, though it remains down 19% year to date.

For a name that has long traded on promise rather than production, this counts as a meaningful inflection. The market is responding to tangible operational evidence.

Eagle Line and First Customer Billings Drive the Move QuantumScape completed its Eagle Line pilot production facility, a higher-volume pilot designed to match the throughput of its Cobra separator process. The Eagle Line was inaugurated on February 4 and is intended to bridge lab-scale demonstrations and full commercial manufacturing.

The second catalyst is the initiation of customer billings. QuantumScape booked $19.5 million in first-ever customer billings for full-year 2025, a new operating KPI that, even at modest scale, signals customers are paying for the technology. The launch customer remains Volkswagen Group’s PowerCo, which received Cobra-process QSE-5 cells.

QuantumScape’s Q4 2025 financials reinforced the operational progress for QS stock. The company’s net loss narrowed to $100.11 million from $114.66 million a year earlier, while R&D fell to $86.77 million. Meanwhile, QuantumScape’s liquidity stood at $970.8 million at year end.

Why Solid-State and Market Diversification Matter Solid-state batteries offer higher energy density, faster charging, improved safety, and longer cycle life than conventional lithium-ion cells. QuantumScape is now positioning that platform beyond electric vehicles, with management targeting AI data centers and defense as new addressable markets where weight, density, and reliability command a premium.

The broader engagement pipeline supports that ambition. The company added two major global automotive OEMs via new joint development and tech evaluation agreements in Q4 2025, alongside ceramics partnerships with Murata Manufacturing and Corning. QuantumScape also guided to a $250 million to $275 million adjusted EBITDA loss for 2026.

Sentiment Split and Insider Activity Crowd sentiment on QuantumScape is running hotter than the sell side. Reddit social sentiment scored 72 on a recent WallStreetBets thread, while the composite prediction-markets index sits at 60.29 with a bullish lean.

Wall Street remains cautious on QS stock. The analyst consensus target is $7.16 with 7 hold ratings and 2 sell ratings, leaving the consensus below today’s price. Insider activity, however, shows 66 recent transactions with net buying, a more constructive signal.

What to Watch Next The bull case rests on QuantumScape converting Eagle Line pilot output into repeatable, scaled production and growing those customer billings beyond the launch partner. Field testing with PowerCo is targeted to begin in 2026, making each operational update increasingly material.

The risk side is equally real, however. QuantumScape is still pre-revenue on product sales, the Eagle Line is pilot rather than commercial scale, and solid-state battery timelines have slipped across the industry for years. Prudent investors may want to size positions accordingly given the capital intensity ahead.

The next major catalyst could be QuantumScape’s Q1 2026 earnings report and any color on customer billings cadence, which management has flagged could vary quarter to quarter. Watch for whether today’s gains hold above $9 into the close.

QuantumScape Corporation is downgraded from Buy to Hold due to increased risks, despite notable operational and financial progress. Eagle Line's pilot-scale production validates manufacturability, addressing the core bear thesis and supporting the PowerCo licensing model. Q1 2026 billings of $11M signal a sharp acceleration, narrowing losses and suggesting the thesis is delayed, not broken.