VWAPY - QuantumScape: Wait For A Dip Following VW Excitement

2024-07-11 17:15:05 ET

Summary

• QuantumScape Corporation and Volkswagen have updated their joint venture agreement, boosting QS stock by 30%.
• Volkswagen is to pay QS $130 million upfront licensing fee for promising solid-state battery technology, though the production timeline is still years out.
• QuantumScape already has a $3.5 billion market cap, with limited sales until 2027 and beyond.

QuantumScape Corporation ( QS ) is soaring on the announcement of an update to the joint venture with Volkswagen AG ( VWAGY ) ("VW"). The updated agreement is likely further validation of the future potential of solid-state batteries, but the battery technology is still years away. My investment thesis is Neutral on the stock following the big rally due to the lack of details on the business timing....

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