We came across a bullish thesis on QuantumScape Corporation (NYSE:QS) on wallstreetbets Subreddit Page by MassaOogway69420. In this article, we will summarize the bulls’ thesis on QS. QuantumScape Corporation (NYSE:QS)’s share was trading at $5.19 as of Dec 31st.
A close up image of a technician changing a battery cell in a lithium-based battery.
QuantumScape, despite its name hinting at quantum technology, is pioneering a leap in battery technology that could transform the electric vehicle (EV) industry. With a market cap of over $3 billion, the company is making strides in developing solid-state batteries, which offer higher energy density and faster charging times, essential for the future of EVs. The company has partnered with Volkswagen’s PowerCo to mass-produce these advanced batteries, with a license agreement to produce enough to power one million vehicles annually. This partnership, along with the anticipated surge in demand for EVs, positions QuantumScape to capitalize on the rapidly growing solid-state battery market. Although the company is still in the pre-revenue stage and its financials are speculative, the technology and hype surrounding QuantumScape make it an attractive play for investors looking at the long-term potential. As the company moves closer to scaling its technology for global EV manufacturers by 2025, the market is expected to take notice again, similar to its hype in 2021. With a competitive edge in solid-state batteries, QuantumScape could potentially capture significant market share as the EV industry continues to expand. The timing of this technology’s rollout, paired with the ongoing surge in battery stocks, suggests substantial upside.
QuantumScape Corporation (NYSE:QS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held QS at the end of the third quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of QS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than QS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.