QS - QuantumScape: Risky But Disruptive
2024-05-23 05:45:52 ET
Summary
- QuantumScape is a strong buy as a high-risk, high-reward investment in the solid-state battery industry.
- Solid-state batteries have the potential to revolutionize the EV industry and reduce environmental impact.
- QS's partnership with Volkswagen and technological milestones make it an attractive investment with the potential for significant returns.
My thesis
Although I tend to be a more risk-neutral investor, I believe it is prudent for individuals in their thirties to allocate some portion of their portfolios to long-term, high-risk, and high-reward plays. While exploring for such opportunities, I came across a solid-state battery industry, which is just starting to evolve. The industry's promise is underscored by the entrance of several significant players. Within this nascent industry, QuantumScape ( QS ) shines. It partners with Volkswagen ( OTCPK:VWAGY ), the world's second-largest automotive company in terms of number of cars sold. The company has reached remarkable technological milestones this year and has already realized its key goal for 2024. Due to the absence of revenue, calculating the intrinsic value of the stock is challenging. However, my calculations suggest that the stock might deliver a 28% annualized return by 2032....
QuantumScape: Risky, But Disruptive