5 Reasons to Buy QuantumScape Stock in 2024

QuantumScape (NYSE: QS) is trying to achieve something with its battery technology that has never been accomplished. Its “solid-state” battery doesn’t need the liquid or gel found inside existing batteries, making it lighter, safer, and higher-performing. The company is the rare true potential game changer.

That said, QuantumScape is pre-revenue and is also the true definition of high-risk and high-reward — not an investment for the faint of heart. If investors can stomach the high-risk part that comes with owning shares of QuantumScape, here are five factors that could push the company from dream to dream-like returns.

Management incentives

A key part of finding successful investments is to find management with incentives that align with long-term company success. QuantumScape has that, and management milestones include completing sample A and B prototypes of its technology, as well as long-term milestones such as $10 billion in generally accepted accounting principles (GAAP) revenue and 20% of global market share (excluding China).

Going with those milestones in tranches are stock price targets between $60 and up to $300, which are tantalizing returns for a pre-revenue company with a stock price trading in the single digits currently. These milestones are long-term-oriented and are reachable if QuantumScape proves its technology on commercial scale — a big if, to be fair.

Anode free

Part of the advantage with QuantumScape’s battery technology is that its solid-state separator is designed to enable anode-free architecture. This is a complicated way of saying the company’s battery will eliminate the anode bill of materials and manufacturing costs found in conventional lithium-ion battery cells.

Aside from the cost savings, QuantumScape’s batteries could recharge from zero to 80% in half the time of most lithium-ion EV batteries today, and could have up to 80% more range of current batteries with similar weight.

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Successfully achieving this technology,…