Electric vehicle (EV) battery maker QuantumScape’s (QS) stock saw a spike recently after the company announced a significant development wherein its Cobra separator process was successfully integrated into its baseline cell production.

Since then, the shares have rocketed by 58% over the past five sessions as Cobra supposedly delivers up to 25x faster heat treatment speeds and requires significantly less equipment footprint per separator than its previous generation Raptor system.

But is this a reason enough to load up on the company’s stock, and can this searing rally continue? Let’s have a closer look.

About QuantumScape

Founded in 2010, QuantumScape (QS) is known for developing next-gen solid-state lithium-metal batteries for EVs, offering higher energy density, faster charging, and improved safety over traditional lithium-ion cells. Backed by marquee investors such as Bill Gates and Qatar Investment Authority, auto major Volkswagen (VWAGY) also holds a material stake in the company.

Valued at a market cap of $3.7 billion, QS stock is up 29.8% on a year-to-date basis.

QuantumScape Is Still Pre-Revenue 

QuantumScape operates in an industry that requires heavy capital expenditure, particularly on research and development. Thus, its unprofitable nature may yet to be a major concern. However, the company is still in the pre-revenue stage, which is undesirable. Moreover, according to the company’s latest quarterly results, the path towards revenue generation is not 100% clear, with only field testing of its platform slated to begin in 2026.

However, QuantumScape has been consistently narrowing its losses. Q1 2025 saw the company report a loss of $0.21 per share, lower than the prior year’s figure of $0.24 per share. Loss from operations also came in lower at $123.6 million, compared to $131.9 million in the year-ago period.

Net cash used in operating activities increased to $60.7 million from $57.9 million in the previous year. Overall, QuantumScape remains in a comfortable liquidity position with a cash balance of $153.5 million. This was way above its short-term debt levels of about $9 million.

Can Cobra Provide the Bite QS Needs?

The integration of Cobra into the baseline cell production is perhaps the shot in the arm QuantumScape needed. Notably, QuantumScape has unveiled a major advance in its manufacturing capabilities with the introduction of its Cobra separator system, which operates at a speed 25 times faster than the model it replaces, while using considerably less floor space. This breakthrough shifts the economics of production, allowing the company to realistically pursue battery output at the gigawatt-hour scale. This was previously constrained by cost and throughput limitations.

This manufacturing innovation feeds directly into QuantumScape’s QSE-5 platform, which represents its most developed solid-state battery architecture to date. These cells are designed around a lithium-metal format that does away with the traditional anode, enabling an energy density greater than 800 watt-hours per liter. The batteries also boast a significant advantage in charging speed, reaching from 10% to 80% state of charge in just under a quarter of an hour. Overall, the company’s broader aim is to deliver a solution that’s smaller, lighter, and capable of extending range, all while reducing the time required to recharge.

QuantumScape has strengthened its position through strategic collaborations. It has formed key partnerships with two major players: Volkswagen, a leading global automaker, and Murata (MRAAY), a well-established manufacturer of electronic components and ceramics. Through its PowerCo division, Volkswagen has entered into a non-exclusive licensing agreement to produce up to 40 gigawatt-hours of battery cells annually using QuantumScape’s technology. In parallel, Murata is expected to support the Cobra process by leveraging its expertise in high-precision ceramics and its worldwide manufacturing footprint.

QuantumScape’s alignment with a global automotive leader like Volkswagen positions it advantageously for the decade ahead. Furthermore, the company is actively pursuing additional licensing arrangements, indicating that its ambitions extend well beyond its current roster of collaborators.

Analyst Opinions on QS Stock 

QuantumScape remains in an interesting space. While it aims to upend the battery industry, practical concerns such as commercialization of its products and eventual revenue generation make investing in the company fraught with risk.

Overall, analysts have attributed a rating of “Hold” to QS stock with a mean target price that has already been surpassed. However, the $8 Street-high price target denotes upside potential of about 20% from current levels. Out of eight analysts covering the stock, one has a “Strong Buy” rating, four have a “Hold” rating, and three have a “Strong Sell” rating.