What's Going On With QuantumScape Stock?

QuantumScape Corporation QS shares are trading higher Friday. The company announced Thursday it has entered into an agreement with Volkswagen's PowerCo to industrialize solid-state batteries.

The Details:

QuantumScape said upon satisfactory technical progress and certain royalty payments, it will grant PowerCo the license to mass produce battery cells based on QuantumScape’s technology platform. 

Under the non-exclusive license, PowerCo can manufacture up to 40 gigawatt-hours (GWh) per year using QuantumScape’s technology with the option to expand up to 80 GWh annually, enough to outfit approximately one million vehicles per year.

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QuantumScape shares have gained more than 50% since the deal was announced. Thursday's June inflation data came in cooler-than-expected and helped to ignite a rally in small cap stocks and sectors with heavy debt loads, including EV-related stocks. 

According to data from Benzinga Pro, QuantumScape shares are moving on heavy volume Friday and trading above the stock’s 50-day moving average of $5.48. 

Should I Sell My QS Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of QuantumScape have decreased by 20.57% in the past year. An investor who bought shares of QuantumScape at the beginning of the year would make a profit of $1.13 per share if they sold it today. The stock has risen 50.04% over the past month, meaning an investor who bought shares on June 1 would see a capital gain of $2.05.

QuantumScape shares have an all-time high of $40.58, representing 418.12% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. QuantumScape stock currently has an RSI of 98.04, indicating overbought conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

QS Price Action: According to Benzinga Pro, QuantumScape shares are up 18.4% at $8.36 at the time of publication Friday.

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Image: Courtesy of QuantumScape Corporation