Incredible news for QuantumScape (NYSE:QS) investors today, as the auto parts company delivered an amazing test for the folks at Volkswagen (OTHEROTC:VWAGY). The test in question was so good that investors flooded in and sent share prices of QuantumScape up over 50% in Thursday afternoon’s trading session.
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The demonstration in question revolved around a new kind of battery, an “…anodeless solid-state lithium metal” battery cell that it developed along with Volkswagen. The technology was found to withstand 1,000 charging cycles and delivered sufficient power that it readily exceeded the basic requirements for an A-sample test. Even after the testing phase, the battery was still found to have 95% of its overall life left, making it a major potential new alternative in electric vehicles or, potentially, home energy storage. Reports note that all QuantumScape needs to do now is get the manufacturing processes up and running, and it could be rolling these things out directly.
The Battery Could Deliver 500K Kilometers of Range
The testing also delivered a rather shocking piece of news: based on the discharge rates and the life of the battery remaining, it could, theoretically, deliver half a million kilometers—about 310,686 miles for those who favor the imperial—of driving range without any kind of range loss. Basically, the vehicle’s chassis itself would probably rust away—assuming a rust-prone chassis—before the battery started slipping, and that’s an amazing development. The applications for home-based solar power systems and the like are staggering as well and could give QuantumScape and Volkswagen a huge new opportunity.
Is QuantumScape a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on QS stock based on four Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 48% rally in its share price over the past year, the average QS price target of $5.84 per share implies 39.42% downside risk.
