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QuantumScape’s battery technology could boost the electric vehicle market.
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QuantumScape shares more than doubled after it began announcing new partnership deals.
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November acted as a sort of “sell news” month.
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2025 has been a good year for Quantum landscape (NYSE: QS) stock. Shares have soared about 140% as the electric vehicle (EV) battery company has advanced its next-generation solid-state technology.
However, the stock had been doing much better before November. The stock is now more than 30% off its recent highs, following a 33.4% drop in November, according to data provided by S&P Global Market Intelligence.
Electric vehicle sales growth has slowed after the initial surge of early adopters converting from internal combustion engine (ICE) cars and trucks. Hybrid options have also eroded some interest in offering all-electric models. One of the reasons for this is the convenience and peace of mind that a backup engine provides, eliminating the risk of running out of battery power when no charging options are available.
If successfully commercialized, QuantumScape’s battery technology will lead to safer, faster-charging and more efficient electric vehicle batteries. That could drive a resurgence in demand for battery electric vehicles. In September, the company held its first live demonstration using a Ducati motorcycle equipped with its battery cells.
QuantumScape followed this with the first of two new partnership agreements for high-volume production and marketing. That progress led investors to buy QuantumScape shares en masse. The stock more than doubled in September and October.
November acted as a “sell the news” month after that strong run in QuantumScape stock. Nothing specific to the business caused the crisis. Some investors may have decided to lock in their gains, while others may have simply deemed the stock too risky for them.
Investing in QuantumScape requires some patience and risk tolerance. Its progress to date makes it seem more likely that the company will be able to produce battery cells in the high volumes needed. But competition or new technologies could also affect potential demand.
QuantumScape remains a high-risk and speculative stock. However, the company is well positioned to go to market. It ended the third quarter with around $1 billion in liquidity, which it believes will now sustain it through 2029.
Investors who want to own something for the potential success of their solid-state battery technology would do well to allocate only a speculative amount. Even with the November liquidation, the company is valued at a market capitalization of around $7.5 billion. That’s a good amount of successful sales already built in, even before the company has started generating real revenue.