3 Reasons to Buy QuantumScape, and 1 Reason to Sell
Top companies, from automakers to parts suppliers, are working hard to fulfill the growing demand for electric vehicles (EVs). At the same time, companies are continuously improving their EV offerings in terms of performance, range they can go on a single charge, and cost.
Solid-state battery technology company QuantumScape (NYSE: QS) is working on batteries that will help EVs go longer distances on a single charge and take less time to recharge, while costing less than the batteries currently in use. Obviously, there is a lot of interest in how the company is progressing. Let's look at QuantumScape's progress and plans, and discuss whether the stock is a buy.
In its latest quarterly results released last month, QuantumScape updated investors on its progress. The company has gotten encouraging results for its 16-layer cells. Cells for use in automotive applications require several dozen layers, and QuantumScape is progressively increasing layers to test energy retention and cycling behavior with each addition. Furthermore, it feels confident about increasing layers without materially affecting the cells' performance.
Source Fool.com