QuantumScape Could Have Breakthrough EV Battery Technology: Wedbush

Former SPAC QuantumScape reported fourth-quarter earnings on Tuesday. The company is still in the pre-revenue stage, and Wedbush's takeaway from the report was the discussion on the future of the company.

What Happened: The takeaways from the shareholder letter and commentary were enough to get Wedbush analyst Daniel Ives excited about the future outlook of QuantumScape Corp QS.

“Quantumscape which is working on developing a solid-state lithium battery appears to have made a significant technical breakthrough that could have a ripple impact across the EV industry,” the analyst said in a Wednesday note. 

QuantumScape has made significant steps in accomplishing what Ives calls “the holy grail of EV battery technology in a solid state form.”

QuantumScape needs to scale this project and complete significant testing for mass production capabilities, the analyst said. 

Related Link: Bill Gates And Volkswagen Backed EV Battery Maker QuantumScape Going Public Via SPAC

What’s Next: QuantumScape is targeting electric vehicle battery production in 2023 or 2024.

“QS is a pure play on next generation battery technology with breakthroughs in the EV battery front that could change the industry down the road given the innovation behind solid state batteries,” Ives said.

If QuantumScape can charge its battery to 80% charged in 15 minutes, it could be a game changer, the analyst said.

Ives also highlighted the relationship between QuantumScape and Volkswagen.

With Apple Inc AAPL actively exploring options for electric vehicle production, the analyst makes the case that a combo partnership with Volkwagen and QuantumScape makes sense.

Noted investor George Soros recently added a stake in QuantumScape. A 13F filed Tuesday showed Soros owns over 3.3 million shares in QuantumScape.

QS Price Action: Shares of QuantumScape were trading 15.65% higher at $58.45 at last check Wednesday. 

Photo courtesy of QuantumScape.