Why QuantumScape Stock Skyrocketed 35% Today

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.

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.