Could QuantumScape Be a Millionaire-Maker Stock?
QuantumScape (NYSE: QS) stock is 73% off its high price of more than $131 in December last year. The stock is even trading at a level lower than its opening price on listing. As a company in an emerging technology, the volatility in QuantumScape stock isn't too striking. The key question is, after falling so much, is the stock a buy now? And can it generate multibagger returns over time? Let's take a closer look at what may and may not work for QuantumScape.
First and foremost, QuantumScape's biggest attraction is its promising technology. The company claims to have achieved major breakthroughs in next-generation battery technology. Right now, electric vehicles use lithium-ion batteries. Though they're a major improvement over their predecessor -- nickel-cadmium batteries -- lithium-ion batteries have their own limitations.
To begin with, their energy density -- the amount of energy produced per kilogram or per liter volume -- is low. This makes them bulkier. As increasing weight beyond a level adversely affects a vehicle's performance, electric vehicles right now have limited range and need frequent recharging.
Source Fool.com
