Is QuantumScape Stock a Buy Now?

Since the start of June, QuantumScape (NYSE: QS) stock has soared 240% higher. The company is making a buzz as it makes progress with its advanced battery technology. Investors have taken notice as the company hits key milestones and expands important partnerships.

So, the big question is: Is it finally time to buy QuantumScape? Let's dive into the company, its progress, and what's next for it to determine if the stock is right for you.

QuantumScape's battery technology is making strides

QuantumScape designs solid-state, lithium-metal battery architecture, focusing on the development and commercialization of next-generation, solid-state, lithium-metal batteries for electric vehicles (EVs) and other purposes. The company views its battery technology as an entirely new category, offering significantly greater energy density, faster charging, and improved safety at scale compared to conventional lithium-ion cells.

The company has been developing its battery technology for several years and has made significant advancements this year. Most recently, it successfully integrated its Cobra separator process into baseline cell production.

QuantumScape uses code names like Cobra and Raptor to distinguish generations of its solid-state separator designs. Its Cobra design made considerable manufacturing efficiency gains compared to its previous generation Raptor process, including a roughly 25 times improvement in heat-treatment speed while utilizing a fraction of the physical space per film start. Put simply, the Cobra design can be manufactured more quickly and cost-effectively than prior designs.

The company achieved a major milestone this year when it began shipping B1 samples of its QSE-5 cell in the third quarter of 2025. This is a significant step forward, as these B-samples were built from production-capable equipment and are much closer to real-world use for automakers. Its Cobra-based QSE-5 cells were featured in Volkswagen's Ducati V21L motorcycle, marking the first live demonstration of its batteries powering an electric vehicle.

Image source: Getty Images.

Expanding strategic partnerships and customer engagement

In July, QuantumScape expanded its arrangement with PowerCo SE (Volkswagen's battery company), which helps accelerate the development of its QSE-5 battery pilot line in San Jose. The agreement gives PowerCo the right to produce an additional five gigawatt hours of QSE-5-based cells annually (including for customers outside Volkswagen) and to license future QuantumScape technology.

As part of the expanded agreement, PowerCo will make additional payments of $131 million over two years contingent upon achieving specific milestones.

In other news, QuantumScape and Murata Manufacturing entered into a joint development agreement in October focused on the high-volume production of ceramic separators. Murata's technologies in ceramic material formulation, sheet forming, and firing are ideal for QuantumScape's ceramic separators. QuantumScape also announced an agreement with Corning to jointly develop ceramic separator manufacturing capabilities, aiming for high-volume commercial production.

Finally, QuantumScape is actively engaged with a new top-ten global automotive original equipment manufacturer (OEM), showing some commercial interest in its battery technology.

Is it a buy?

Thanks to efficiency gains from process improvements, including its Cobra process, the company revised its full-year capital expenditure guidance range lower to $35 million at the midpoint, down from the previous guidance of $55 million at the midpoint.

With that said, the company will continue to lose money as it builds up its production capabilities and advances its technology further. Analysts project that it will continue to operate at a net loss for the next several years. A significant reason for this is that they don't expect substantial revenue until 2027, when it's estimated to reach $54 million, and 2028, when it's projected to increase to $491 million.

QuantumScape has made progress on its battery technology and is ramping up sample production while building strategic partnerships and engaging in discussions with additional customers. However, it's still a few years away from generating meaningful revenue and has several milestones to achieve before then. While I'm intrigued by the company and its technology, the stock is best left for aggressive investors while it's still in its early stages.

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Corning. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.