Parkev Tatevosian, CFA on $QS (Oct 31, 2026)

QuantumScape's stock is trading at approximately $4 per share. Of course, I upgraded the stock rating to "buy" on approximately July 27 when it was trading at $5 per share.

At the beginning of 2026, I thought the stock was overpriced, and overall, the stock has fallen by 60% since the beginning of the year. The company is developing solid-state battery technology, which aims to improve upon the lithium-ion technology currently used in electric vehicles and other categories.

Electric vehicles are the primary target sector for the company’s solid-state battery technology , but the management team has previously mentioned the possibility of expanding into consumer electronics, and more recently, the company has begun expanding into artificial intelligence data centers and defense sectors as potential areas to diversify its industrial base where its technology can be used.

They have achieved remarkable accomplishments , reached major goals, and evidence suggests that their technology and development are progressing well . Their partnership with Honda has already gotten off to a great start.

They are testing their technology with other industrial companies, and it may take some time before the company starts generating real, meaningful revenue, but their research and development efforts have so far gone according to plan, if not better than expected.

You can see the price movement of QuantumScape stock here. The stock has fallen 60% since the beginning of the year, and progress towards the next-generation production target set by the management team for the period 2027-2028 appears strong.

So, as I mentioned, I upgraded the stock to " buy" on July 27th, seeing it as an opportunity for high- risk investors looking for stocks that could be a masterstroke, or generate returns 100 times greater, potentially doubling your investment.

Therefore, this stock could reach zero, but it could also reach a great value. Therefore, it involves significant upside potential, but also significant downside risks. They don't deplete much of their capital, and that's one of the reasons I was excited about this opportunity.

As you know , this company had at most about $1.5 billion in cash and short- term investments. Of course, they went public in 2021, taking advantage of the hype surrounding electric vehicle stocks, and given their solid-state battery technology, their primary target was electric vehicles.

Many of these electric vehicle companies have suffered, including QuantumScape.

I never rated this stock as a buy opportunity until July 27, when I upgraded it to a buy recommendation . So, they now have $820 million in cash and in short-term investments. So, they have spent only about $800 million since 2021 to get to where they are today, and they are now very close to the manufacturing stage of their products .

They are currently working on the "Eagle" line , which is the name they give to their current manufacturing line. They are already producing viable quantities that are sent to manufacturers for testing.

Manufacturers such as Honda are testing this technology in their vehicles to see if it is ready for wider deployment. Therefore, if the experiment is successful, it will not be just a small success, because Honda, Toyota, Volkswagen, or any other car manufacturer will not choose to deploy this technology in only some of their cars .

If successful, electric vehicles incorporating this technology will fully adopt it in all the thousands of units they produce.

Therefore, and that is why I say it will either be a resounding success or a complete failure. I don't think this stock will achieve any average result. It is difficult to evaluate this company because it is still in the pre- revenue stage.

Therefore, we are looking at the progress made in research and development. We look at market potential, market size, and the rate of cash consumption compared to the progress they are making.

One of the metrics we can look at is the price-to- sales ratio, because they have started to look at customer invoices. They started receiving orders worth several million dollars from customers.

These are just installments, aren't they? Trial batches, but the samples have now grown large enough that their total value will be several million dollars.

Thus , the price-to-forward sales ratio currently stands at 357. This is the lowest level in the company's history. But again, it is not a very important metric when evaluating QuantumScape, or not as important when evaluating other companies and businesses.

So, one of the things that makes me very optimistic is also the size of the AI industry and its energy and energy storage needs. This could be something new that QuantumScape is targeting and could create greater excitement among investors.

This may create an easier opportunity for the company to raise capital.

This larger, manageable market opportunity means greater gains for QuantumScape's stock investors . So I will answer the question I posed in the title: Does this look like a buying opportunity when the price is low? I think so.

This is one of the companies that I am interested in investing in as one of those high-risk, high- return investments to include in my portfolio. I would remind investors that you should only be interested in this company if you have a high risk tolerance.

If you're willing to take above-average risk, you know this is arguably one of the riskiest stocks you can buy, but it has one of the greatest growth opportunities of any stock I follow.

Therefore, I reiterate that I believe it is an attractive opportunity when comparing risks versus returns, but only for investors with a very high risk tolerance.