Quantumscape Corp Share Price Forecast September 2021 – Time to Buy QS?
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Shares of American startup Quantumscape Corp (NYSE: QS) are in the red today after closing at $23.61 as of September 22nd (20:50 UTC-4). QS shares surged on Tuesday by 15.9% at one point. While its product is still in its fledgling stage, the company is already receiving suiters from some of the world’s biggest automakers. With the recent focus on environmentally friendly fuels, is Quantumscape Corp positioned to become a leader in the near future?
Quantumscape Corp – Technical Analysis
Quantumscape Corp financial statement indicates a market cap of $9.79 billion with total assets worth $1.743 billion.
Moving averages for Quantumscape Corp such as Exponential Moving Average (10)(22.10), Simple Moving Average (10)(21.68), Exponential Moving Average (20)(21.85), Simple Moving Average (20)(21.71), Exponential Moving Average (30)(21.99) are all indicating a buy action. On the other hand, oscillators such as Stochastic RSI Fast (3, 3, 14, 14) (69.96), Williams Percent Range (14)(−22.51), Bull Bear Power(3.65) and Ultimate Oscillator (7, 14, 28)(57.02) are all neutral.
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Recent Developments
On Tuesday, Quantumscape Corp announced that it made a regulatory filing on September 21st which contains an agreement with a second automotive original equipment manufacturer. While it did not reveal the identity of this company, it stated that the company has already evaluated its early cells and has agreed to conduct a further evaluation of its advanced prototypes of solid-state battery cells. The unnamed company will also purchase 10 megawatt-hours (MWh) of capacity from QuantumScape’s pre-pilot production line facility dubbed QS-0. Quantumscape Corp hopes to deliver advanced prototypes before commercial production begins for the QS-0 in 2023.
Quantumscape Corp has replaced liquid electrolyte solutions with ceramic separators to make their solid-state batteries smaller, more power-dense, longer-lasting, and safer than traditional lithium-ion batteries. The batteries can charge more quickly and degrade more slowly compared to existing lithium-ion batteries, which could serve as the future of the EV industry. While this sounds encouraging, the company still has to produce the multi-layer stacks needed in automobiles. There are several other technical factors that should be addressed by the company before its product is ready for commercial use.
Quantumscape Corp is not the only one to make solid-state batteries as a number of automakers such as Toyota have started investing in solid-state batteries made using sulfur-based electrolytes. But producing solid-state batteries can be a costly affair to which QuantumScape believes to have found a solution. The company has already started production of single-and-four-layer cells and started testing on 10-layer battery cells.
Should You Buy QS Shares?
While investors are not provided details regarding the identity of this OEM as stated in the agreement, they can quite guess which company that is. It is a well-known fact that QuantumScape has a long-standing partnership with Volkswagen which is one of the biggest OEM in terms of revenue. While the company is still light-years away from trying to commercialize its solid-state batteries, the fact that an auto giant has already shown confidence in its cell prototypes is enough to lift investor sentiment.
Despite the many uncertainties, the company can start production of its batteries by 2023 or 2024 if everything runs smoothly. QuantumScape expects to have a production capacity of 6 GWh (gigawatt hours), enough to support around 60,000 vehicles by the year 2026. On the flip side, the company could fail to achieve the required breakthrough in solid-state battery technology. Things will start to be clear in another three years when it expects to start its pilot production. Till then, Investors should watch these shares closely and add them to their watchlist.
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