After explosive gains yesterday, QuantumScape (QS -1.92%) stock pulled back in Friday's trading. The battery-technology company's share price was down 8.5% as of 3 p.m. ET, according to data from S&P Global Market Intelligence.
On Thursday, Volkswagen's PowerCo subsidiary published encouraging test data for QuantumScape's solid-state lithium battery technology. The test results powered incredible gains and pushed the company's share price up roughly 46% in a single daily trading session. While there isn't any business-specific news pushing the company's share price lower today, investors are weighing PowerCo's recent test results and pumping the breaks on QuantumScape stock.
Is QuantumScape stock a buy for 2024?
Adoption for electric vehicles (EVs) has been proceeding at a rapid pace, but there are still some significant roadblocks to mainstream adoption. Many of these roadblocks are rooted in the limitations of existing battery technologies.
QuantumScape's solid-state lithium solutions aim to bring down costs, improve fast-charging times, and limit the charging capacity and range reductions that occur over the lifetime of EV battery usage. With the recent test results from Volkswagen's PowerCo subsidiary suggesting that QuantumScape's technology would return roughly 95% of its charging capacity after 1,000 charging cycles (or approximately 500,000 kilometers), there are good reasons to be bullish about the battery-tech company's stock.
Volkswagen is invested in QuantumScape, and the test results suggest that the auto giant could look to incorporate its battery tech somewhere down the line. But investors should understand that the company's outlook is still highly speculative.
QuantumScape still has to prove that its technologies are commercially viable out in the real world. If the company's solid-state lithium batteries prove to be commercially viable at scale, QuantumScape stock could deliver incredible returns for investors who buy shares at today's prices. If not, could crater from current valuation levels.
