QS Stock Price Rose Over 7%, Is the Right Time to Buy?

QS stock price rose by 7.81% in a time frame of 24 hours.

QuantumScape Corporation is an American company headquartered in San Jose, CA and was established in 2010. The company is trying hard to establish its position in the battery manufacturing industry.

After the closing of NYSE on January 20, 2023, QS stock mirrored an impressive hike of 7.81% in 24 hours with an average volume of 7.04M.

In the current scenario, the automobile industry is changing rapidly and shifting towards adopting E-Vehicles steadily due to the increasing concerns about global warming.

This changing trend in the automobile industry gives a push to lithium battery producers. QuantumScape Co. (NYSE: QS) is one of the growing companies in the industry and can leverage the increasing demand for Lithium.

One of the major factors that may deliver a positive effect is Lithium. The company already deals in solid-state lithium batteries, and the increasing demand for EVs has directly affected demand for the element.

Its production has increased from 28,100 Metric Tons in 2010 to 82,000 Metric Tons in 2020. The company needs to tighten its grip on Lithium producing regions.

Currently, CATL (Contemporary Amperex Technology Co.Limited) is the topper among Lithium-Ion battery manufacturers globally.

Although QS stock prices have decreased by 51.35% in the last year, its 52-week low is around $5.11.

Although reliable data and several other stock analysts state that the company is under great losses, the financial statements for all three quarters of 2022 are unavailable.

It is mandatory to note that QuantumScape is working hard to establish itself among global battery manufacturers and reports state that the company is working with Volkswagen, a German automobile company.

Thrilled to share we have shipped our first 24-layer prototype battery cells to multiple automotive manufacturers for testing. Delivering these first-gen prototype A0 samples was our key goal for 2022 & an important step in commercializing our technology. https://t.co/dgTaUO3eBS
— QuantumScape (@QuantumScapeCo) December 20, 2022

Volkswagen is also one of the biggest investors in QuantumScape and invested around $100 million in the company in 2018. The German automobile company invested an additional $200 million in batteries in 2020.

By the end of the first quarter of 2022, QuantumScape came up with an idea to manufacture solid-state batteries that range 650km in just charging for 15 minutes.

The company has several other investors, such as Qatar Investment Authority, Fidelity Management and Research Company, Janus Henderson Investor, and Lightspeed venture.

According to Priviko, as of June 17, 2020, QuantumScape’s post-money valuation was between $1B to $10B.

Technical Levels

Support Levels: $5.13

Resistance Levels: $9.46 and $11.99 and $13.74

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing