Should I buy QuantumScape stock in 2025?

What is QuantumScape?

How much is the QuantumScape stock?

The price of QuantumScape stock is falling this week. As of now, QS trades at $4.06, reflecting a 24-hour decline of 6.02% and a 5-day decrease of 2.27%. The company holds a market capitalisation of $2.41 billion, with an average three-month trading volume of 10.93 million shares. QuantumScape currently reports no P/E ratio as it remains unprofitable, offers a 0% dividend yield, and carries a notably high beta of 4.38. Given this extreme volatility, investors in South Africa should carefully weigh the risks and potential rewards of this cutting-edge battery technology stock.

Our full analysis of the QuantumScape stock

Having carefully reviewed QuantumScape’s most recent financial results alongside its three-year share price performance, we have leveraged an extensive combination of financial ratios, technical indicators, competitive benchmarking, and market sentiment—synthesized by our proprietary algorithms—to deliver a comprehensive view of the stock’s prospects. As the solid-state battery segment evolves at breakneck speed, QuantumScape sits at the intersection of technological transformation and investor curiosity. So, why might QuantumScape stock once again represent a strategic entry point into the next generation clean tech sector in 2025?

Recent Performance and Market Context

QuantumScape (NYSE: QS) has traversed a tumultuous path over the past three years, culminating in a current share price of $4.06 (as of 29 May 2025), within a 52-week range of $3.40 to $9.52. Despite registering a -21.8% performance year-to-date and a -32% one-year return, recent trading patterns and underlying news flow suggest the narrative surrounding QS is evolving. The intraday retreat of -6.0% and a still robust $2.41 billion market capitalization indicate that despite short-term volatility, market participants continue to assign significant option value to QuantumScape’s future breakthroughs.

Encouragingly, the company announced in July 2024 a landmark partnership with PowerCo, the battery subsidiary of Volkswagen—one of the world’s largest automakers. This agreement to industrialize and scale QuantumScape’s pioneering solid-state lithium-metal battery technology catapults QS to the leading edge of electrification, with direct access to Volkswagen’s mass production ecosystem.

From a sector perspective, the global EV battery market is projected to triple in size by 2035—a tailwind that bodes well for innovative technology providers. Regulatory pressure in the EU, US, and Asian markets continues to drive automakers and consumers toward enhanced, safer, and longer-duration battery solutions. Against this backdrop, QuantumScape’s strategic positioning appears increasingly compelling for forward-thinking investors.

Technical Analysis

On a technical basis, QuantumScape displays a fascinating setup for momentum-driven and value-seeking investors alike. The stock has recently found a robust support level at $3.50, with overhead resistance marked at $4.70. Significantly, on 28 May 2025, the share price surged through its 20-day moving average by 8.27%—typically a bullish signal often preceding continued positive momentum.

Meanwhile, a Relative Strength Index (RSI) reading of 72.27 places the stock in overbought territory, reflecting strong buying interest. The MACD (Moving Average Convergence Divergence) at 0.09 also supports the premise of an impending bullish phase, with upward momentum starting to take precedence.

It is noteworthy that QS crossed below its 50-day moving average in mid-May, suggesting a transition point in sentiment. However, the confluence of bullish signals—including actionable bounces from technical support and renewed volume—indicate potential for swift recovery, particularly as catalysts develop in the short and medium-term.

Fundamental Analysis

Even as QuantumScape operates pre-commercialization with negative EPS (-$0.86 TTM) and a lack of price/earnings (P/E) due to current losses, the underlying fundamentals support renewed optimism. The company reported an adjusted EBITDA loss of $64.6 million in Q1 2025—a figure precisely in line with consensus and evidence of disciplined cost management at an advanced R&D stage. The guidance for 2025 projects an adjusted EBITDA loss between $250M and $280M, with capex projected at a lean $45M–$75M, demonstrating a commitment to capital efficiency.

Perhaps most notable is the robust cash position: $860 million in liquidity provides an extended runway for commercial scaling. With projected 2025 revenues of $39 million (a significant inflection compared to prior periods), QuantumScape is at the threshold of its commercialization journey—poised to benefit directly from its deep technological moat.

Strategically, the partnership with Volkswagen crystallizes both the company’s innovation leadership and its capacity to gain early market share. Solid-state lithium-metal technology, offering faster charging, higher energy density, and greater cycle life, is increasingly recognized as the “holy grail” of next-gen batteries. In a sector where technological differentiation is paramount, QS’s progress positions it distinctively above less advanced competitors.

On valuation, the price/book ratio sits at 2.05—attractive for a high-potential tech company with a unique intellectual property portfolio, and considerably less speculative than classic early-stage biotechnology or cleantech stocks.

Volume and Liquidity

Current trading volumes reinforce market confidence in QS. With a three-month average of 10.9 million shares and recent daily spikes above 14 million shares transacted, liquidity is ample and robust. The public float of 394 million shares provides a healthy balance between tradability and upside revaluation potential.

High liquidity ensures dynamic price discovery—critical in a stock characterized by a 4.38 beta. This volatility, while potentially unsettling for some, offers resourceful investors the opportunity to capitalize on pronounced swings, especially as volume surges often coincide with price momentum and approaching catalysts.

Catalysts and Positive Outlook

• Commercialization Milestone: The rollout of solid-state cells through PowerCo/Volkswagen, with pilot-scale production and subsequent vehicle integration anticipated in late 2025 and 2026.
• Rising ESG Demand: QS’s battery technology not only furthers electric mobility, but also answers to strict ESG criteria—an increasingly pivotal theme for global institutional investors.
• Expanding TAM (Total Addressable Market): With the EV battery market set to explode beyond $250 billion by 2035, even modest adoption of QS’s product could translate into exponential top-line growth.
• Technical Innovation: Recent reports confirm superior cycle life and charge rates, potentially leapfrogging incumbent lithium-ion solutions.
• Sectoral Momentum: Regulatory tailwinds—including stricter emissions standards in the EU and US, alongside subsidies for battery innovation—further de-risk QuantumScape’s medium-term commercialization.
• Significant Upcoming Events: The Q2 2025 earnings, expected on 23 July, is ideally positioned as a near-term catalyst against a backdrop of heightened institutional coverage.

For South African investors, the global pivot to EVs and the strengthening trade relationships between African battery materials suppliers and Western technology players add further context and opportunity, demonstrating QS’s capacity to ride both global and regional growth trends.

Investment Strategies

Example: Short-Term, Medium-Term, and Long-Term Investment Approaches

Short-Term: Traders may identify technical swings around the $3.50 support and $4.70 resistance levels, with current momentum favoring agile entries as volume rebounds. Positive news or results around Q2 could trigger sharp rallies, rewarding nimble positioning.

Medium-Term: For position traders, a “buy-on-dip” strategy around technical support, timed before the Q2 earnings announcement, aligns with the anticipated ramp in commercial activities. The stabilization of losses and preservation of cash runway reinforce the stock’s risk/reward profile.

Long-Term: Investors oriented toward transformative technologies may find current levels compelling, as QS embarks on the cusp of commercialization—and with a robust strategic partnership de-risking execution. For those seeking asymmetric upside, exposure at technical lows or in anticipation of new product launches could prove especially additive to portfolio growth.

Is it the Right Time to Buy QuantumScape?

QuantumScape’s convergence of groundbreaking technology, exceptional strategic alliances, and vast market potential creates a compelling tapestry for investors focused on next-generation and ESG-aligned growth stories. The stock’s recent technical support, resilient liquidity, and anticipated near-term catalysts—especially in the context of electrification and energy storage—suggest it may be entering a new bullish phase. Despite previous volatility, the strong cash position, disciplined management, and accelerating sector tailwinds justify renewed and serious consideration by investors eyeing quality tech exposure at a developing inflection point.

For those positioned to navigate short-term swings with an eye on transformative long-term upside, QuantumScape offers a differentiated way to gain access to the “picks-and-shovels” of the global EV revolution. As the countdown to the Q2 results accelerates and as corporates and consumers increasingly demand superior battery technology, the fundamentals and momentum around QuantumScape seem to represent an excellent opportunity for well-calibrated portfolios.

In a sector defined by innovation and high-conviction themes, QuantumScape stands out as an emblematic play on the future of energy storage—an irresistible proposition for investors seeking to align with tomorrow’s technology leaders, today.

How to buy QuantumScape stock in South Africa?

Buying QuantumScape stock online from South Africa is both straightforward and secure when using a regulated broker. Most platforms allow you to get started quickly, whether you want to own the shares directly (spot buying) or trade them through Contracts for Difference (CFDs). Both options come with their own characteristics—spot buying gives you ownership, while CFDs let you speculate with leverage. To help you choose the right approach and platform, see our broker comparison further down the page.

Spot buying

When you buy QuantumScape (QS) stock “for cash”, you become the actual shareholder. This means your shares are registered in your name via your broker, and you can benefit fully from any future capital gains. South African brokers and global platforms typically charge a fixed commission per trade, usually displayed in ZAR but often converted for US shares. Expect a typical fixed broker fee of around R100–R150 per order (about $5–$8).

Example

Example with a $1,000 investment: If the QuantumScape share price is $4.06, you could buy approximately 246 shares with a $1,000 stake (after accounting for a $5 brokerage fee).
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on QuantumScape’s price movement without actually owning the shares. CFDs offer the advantage of leverage—meaning you can gain greater market exposure with less capital. Fees usually include a spread (the difference between buy and sell prices) and overnight financing costs if you keep the position open more than a day.

Example

Example with a $1,000 investment and 5x leverage: You open a CFD position on QuantumScape shares with 5x leverage, providing you with effective exposure of $5,000.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 outlay (excluding fees).

Final advice

It’s essential to compare brokers’ fees, account requirements, and regulatory status before investing—costs and conditions can vary substantially. Whether you choose direct share ownership or CFD trading depends on your objectives, risk tolerance and how you wish to engage with the market. Consult the broker comparison further down this page to find the best platform for your needs.

Our 7 tips for buying QuantumScape stock

The latest news about QuantumScape

QuantumScape stock surged above its 20-day moving average with an 8.27% gain on 28 May 2025. This bullish technical signal followed a resurgence in trading volume, with over 14.7 million shares traded as the stock moved firmly through a key technical level, reflecting renewed short-term investor confidence. Such momentum is particularly notable for South African investors and market watchers, as it offers potential tactical trading opportunities and signals a shift that may impact investment products or ETFs with US tech holdings available on the JSE or via offshore platforms.

QuantumScape’s partnership with PowerCo (Volkswagen) advances the industrialisation of solid-state battery technology. The ongoing industrial-scale collaboration with Volkswagen's PowerCo, formalised in July 2024, continues to underline QuantumScape’s strategic position in the global EV supply chain. Given South Africa’s developed automotive sector, with both Volkswagen and major local assemblers seeking next-generation battery solutions for exports and domestic production, this partnership may signal future supply chain opportunities or technology transfers that could benefit South African component manufacturers or battery value chain participants.

QuantumScape maintains robust liquidity, with cash reserves of $860.3 million as of Q1 2025. The company’s solid cash position, as reported in its latest quarterly results, reassures investors of its ability to fund ongoing R&D and capital expenditures, even in the absence of significant operating revenues. For South African institutional investors with exposure to global innovation sectors, this financial stability reduces short-term solvency risk and adds a layer of confidence for those tracking disruptive technology pipelines with long-term commercialisation horizons.

Analyst consensus remains to hold, but price targets imply substantial upside potential from current prices. Recent coverage from leading investment banks sets the 12-month price target range at $4.83 to $5.19 on average, with highs up to $8.00—representing a potential upside of up to 37.5% from current levels. South African equity analysts and multi-asset portfolio managers tracking disruptive tech themes may view this as an indicator to maintain exposure in the face of current volatility, especially as QuantumScape’s long-term prospects align with decarbonisation trends influencing South African ESG mandates and green investment flows.

QuantumScape’s solid-state battery innovation addresses global market growth to $251 billion by 2035. The company’s lithium-metal solid-state battery, which promises faster charging, longer range, and greater longevity, positions it as a leading participant in a sector expected to nearly triple over the next decade. As South Africa accelerates investment in green energy and clean transport—driven by state policy, automotive manufacturing ambitions, and the growing EV market—successful deployment of such battery technology could have direct spill-over effects, aligning with local objectives to bolster EV infrastructure and support sustainable economic development.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.