California-based battery maker QuantumScape (QS) has teamed up with a large automaker to evaluate prototypes of its solid-state battery cells, according to a report published by Reuters. Shares of the company climbed over 16% to close at $24.12 on Tuesday.
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Backed by Volkswagen AG (VWAGY), QuantumScape develops next-generation solid-state lithium-metal batteries for electric vehicles. As per the terms of the deal, the automaker has an option to buy battery capacity worth 10-megawatt hours from QuantumScape’s pre-pilot production line facility.
When asked to identify the automaker, the company said it was a “second top ten” automaker by global revenue. (See QuantumScape stock chart on TipRanks)
Two months ago, Robert W. Baird analyst Ben Kallo reiterated a Hold rating on the stock with a price target of $26 (7.8% upside potential). The analyst expects the company to report a loss of $0.20 per share in the third quarter.
Overall, the stock has a Moderate Buy consensus rating based on 1 Buy and 2 Holds. The average QuantumScape price target of $34 implies 41% upside potential. Shares of the company have lost 62.5% over the past six months.
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