Shares of QuantumScape (QS 34.92%) finished the day up 35%. The jump comes as the S&P 500 (^GSPC 0.80%) and Nasdaq Composite (^IXIC 0.97%) gained 0.8% and 1%, respectively.
QuantumScape announces Cobra is here
QuantumScape stock is continuing its run-up following a major announcement earlier this week. The company announced on Tuesday that it had achieved a “major milestone” in developing its solid-state lithium battery. QuantumScape says it has integrated its Cobra separator process — a key element of its next-generation battery manufacturing — into its baseline production line.
The company says that this will enable “faster, more energy-efficient production with a smaller equipment footprint compared to earlier processes,” claiming it is a “25x improvement” over its prior process.
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In a press release, QuantumScape’s co-founder and CTO Tim Holme described Cobra as “a step-change innovation in ceramic processing,” adding that it will enable “a major improvement in productivity compared to Raptor, which was already a considerable advancement compared to the previous generation.”
Promising technologies have a lot to prove
QuantumScape stock is down more than 90% from its high in 2020. That’s because the company has a history of making major claims and failing to deliver on those promises. Still, the technology is promising and would certainly be disruptive if it can bring its solid-state batteries to market. There’s a lot of competition, though.
If QuantumScape falls behind its rivals, the stock could collapse. I would stay away from QuantumScape, unless you have a particularly high risk tolerance.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
