Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
0
Very low revenueRev LTMTotal Revenue or Sales, Last Twelve Months is 0
1
Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -491 Mil
2
Stock price has recently run up significantly6M Rtn6 month market price return is 309%, 12M Rtn12 month market price return is 233%
3
Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate,
Reflects the premium above risk free assets offered by the investment. is -8.7%
4
High stock price volatilityVol 12M is 103%
0
Very low revenueRev LTMTotal Revenue or Sales, Last Twelve Months is 0
1
Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -491 Mil
2
Stock price has recently run up significantly6M Rtn6 month market price return is 309%, 12M Rtn12 month market price return is 233%
3
Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate,
Reflects the premium above risk free assets offered by the investment. is -8.7%
Here are five key points explaining QuantumScape's (QS) stock movement of 93.3% from approximately July 31, 2025, to November 8, 2025:
1. Debut of Solid-State Batteries in a Ducati Motorcycle and Expanded PowerCo Collaboration.
In September 2025, QuantumScape, in collaboration with Volkswagen's PowerCo, unveiled its solid-state batteries in a Ducati motorcycle at IAA Mobility. This event marked the first live demonstration of QuantumScape's solid-state lithium-metal batteries in an actual electric vehicle, significantly boosting investor confidence and fueling a stock surge. This followed an expanded collaboration agreement with PowerCo earlier in July to accelerate commercialization.
2. Shipment of QSE-5 B1 Samples.
QuantumScape announced the shipment of its QSE-5 B1 samples in October 2025, achieving a crucial annual goal. This milestone was highlighted as a significant step towards commercialization, as these prototypes were sent to automotive partners for testing, moving the technology closer to real-world application.
Here are five key points explaining QuantumScape's (QS) stock movement of 93.3% from approximately July 31, 2025, to November 8, 2025:
1. Debut of Solid-State Batteries in a Ducati Motorcycle and Expanded PowerCo Collaboration.
In September 2025, QuantumScape, in collaboration with Volkswagen's PowerCo, unveiled its solid-state batteries in a Ducati motorcycle at IAA Mobility. This event marked the first live demonstration of QuantumScape's solid-state lithium-metal batteries in an actual electric vehicle, significantly boosting investor confidence and fueling a stock surge. This followed an expanded collaboration agreement with PowerCo earlier in July to accelerate commercialization.
2. Shipment of QSE-5 B1 Samples.
QuantumScape announced the shipment of its QSE-5 B1 samples in October 2025, achieving a crucial annual goal. This milestone was highlighted as a significant step towards commercialization, as these prototypes were sent to automotive partners for testing, moving the technology closer to real-world application.
3. First Customer Billings and Narrowing Losses in Q3 2025.
The company reported its Third Quarter 2025 business and financial results in October 2025, which included its first tangible customer billings of $12.8 million. Additionally, the report showed an improvement in earnings per share (EPS) and narrowing losses, signaling improved financial and operational discipline, which was viewed optimistically by investors.
4. Strategic Partnership with Corning for Ceramic Separator Development.
On September 30, 2025, QuantumScape and Corning Incorporated announced an agreement for the development and commercialization of ceramic separators. This partnership is considered a foundational step for QuantumScape to build a network of partners and industrialize and scale its next-generation solid-state battery technology.
5. Integration of "Cobra" Separator Process and Extended Cash Runway.
QuantumScape integrated its "Cobra" separator process into baseline production in October 2025, which significantly reduced the overall footprint and production time for its solid-state cells. Furthermore, efficiency gains and a reduced capital expenditure forecast extended the company's liquidity and cash runway through the end of 2030, alleviating long-term funding concerns.
[1] Cumulative total returns since the beginning of 2020 [2] Peers: TSLA, EMR, ALB, FLUX, CREV. See QS Returns vs. Peers. [3] Win Rate = % of calendar months in which monthly returns were positive [4] Max drawdown represents maximum peak-to-trough decline within a year [5] 2025 data is for the year up to 11/7/2025 (YTD)
QuantumScape Corporation, a development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.
[1] Choosing top 10 best bets from each sector quarterly is an alpha producing strategy vs sector benchmark [2] Historical annualized return of 14%, alpha of 2.9%, and sharpe of 0.61
DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap
DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
Comparison of QS With Other Asset Classes (Last 1Y)
QS
Sector ETF
Equity
Gold
Commodities
Real Estate
Bitcoin
Annualized Return
226.5%
19.1%
18.9%
45.7%
0.7%
-1.3%
49.7%
Annualized Volatility
102.8%
24.9%
19.6%
19.9%
16.1%
18.0%
37.2%
Sharpe Ratio
1.60
0.65
0.76
1.78
-0.14
-0.22
0.85
Correlation With Other Assets
28.8%
30.4%
5.3%
10.8%
16.3%
26.0%
ETFs used for asset classes: Sector ETF = XLY, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
Comparison of QS With Other Asset Classes (Last 5Y)
QS
Sector ETF
Equity
Gold
Commodities
Real Estate
Bitcoin
Annualized Return
7.1%
11.4%
17.1%
15.9%
13.8%
7.2%
49.2%
Annualized Volatility
103.4%
23.8%
17.1%
15.6%
18.9%
19.1%
49.3%
Sharpe Ratio
0.52
0.44
0.81
0.82
0.61
0.29
0.76
Correlation With Other Assets
38.5%
34.3%
2.7%
7.2%
28.0%
25.8%
ETFs used for asset classes: Sector ETF = XLY, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
Comparison of QS With Other Asset Classes (Last 10Y)
QS
Sector ETF
Equity
Gold
Commodities
Real Estate
Bitcoin
Annualized Return
10.5%
12.5%
14.3%
12.9%
5.1%
5.3%
77.5%
Annualized Volatility
109.4%
22.0%
18.0%
14.7%
17.7%
20.9%
56.2%
Sharpe Ratio
0.56
0.53
0.69
0.72
0.22
0.23
0.95
Correlation With Other Assets
33.8%
29.1%
2.3%
6.0%
25.5%
20.9%
ETFs used for asset classes: Sector ETF = XLY, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD Smart multi-asset allocation framework can stack odds in your favor. Learn How
