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How QuantumScape's 2025 Milestones Set the Stage for 2026
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Key Takeaways
QS advanced its Cobra separator into baseline cell production, boosting speed and efficiency versus Raptor.
QuantumScape secured up to $131M from Volkswagen PowerCo and posted $12.8M in Q3 customer billings.
QS completed Eagle Line core equipment install and began B1 sample deliveries to multiple OEM partners.
QuantumScape Corp. (QS - Free Report) has been one of the more compelling names in the electric vehicle (EV) battery space this year. After years of bold promises, the solid-state battery developer is showing tangible progress and investors have taken notice. QS stock has risen more than 125% year to date, comfortably outperforming the broader industry.
Image Source: Zacks Investment Research
This rally reflects a series of operational, technology and partnership milestones that have moved QuantumScape closer to real-world validation. While commercialization is still some distance away, 2025 has so far marked an important transition phase for the company.
A Manufacturing Breakthrough With the Cobra Process
QuantumScape’s most significant technological milestone this year came with the successful advancement of its Cobra separator process. Announced in June, Cobra entered baseline cell production.
Compared with the earlier Raptor system, the Cobra process is roughly 25 times faster and far more compact. That matters because manufacturing speed, footprint, and efficiency are critical barriers to making solid-state batteries commercially viable.
Image Source: QuantumScape, Corp.
Volkswagen Deepens Its Commitment
Another confidence booster came from Volkswagen’s (VWAGY - Free Report) PowerCo subsidiary. In July, PowerCo agreed to provide up to $131 million in milestone-based payments over the next two years to support the development of the QSE-5 pilot line in San Jose. This followed an earlier $130 million licensing deal.
The expanded commitment signals that Volkswagen continues to see strategic value in QuantumScape’s technology. More importantly, the milestone-based structure ties funding directly to execution.
First Customer Billings Mark a Turning Point
QuantumScape reported $12.8 million in customer billings in the third quarter. While modest in size, the figure represents an important shift. These billings came from Volkswagen’s PowerCo for joint development work. The company didn’t recognize these billings as revenues, but they still matter.
Customer billings offer a tangible measure of partner engagement and signal that development programs are actively moving forward. After years of pre-commercial status, this is one of the first signs of monetization-related activity.
B1 Sample Deliveries and Ducati Validate QS’s Tech
In the third quarter, QS hit another milestone with the start of B1 sample deliveries. Management confirmed that multiple OEM partners are now evaluating these cells.
The progress was on display at the IAA Mobility Show in Munich, where QuantumScape and Volkswagen unveiled a Ducati V21L motorcycle powered by the company’s QSE-5 cells. Built using its COBRA process, these cells showcased exceptional performance—844 Wh/L energy density, 10–80% charging in just over 12 minutes and the ability to handle 10C continuous discharge.
Eagle Line Signals Manufacturing Progress
Operationally, QuantumScape recently hit another key target. Core equipment for the Eagle Line pilot production facility in San Jose is now fully installed. Management had previously guided for installation to be completed by year-end, and that milestone has been met.
The Eagle Line is a highly automated pilot line designed to support QSE-5 production. With installation complete, the focus shifts to ramping up output and refining processes. This is another concrete step toward manufacturing readiness.
What Do Estimates for QuantumScape Say?
The Zacks Consensus Estimate for QuantumScape’s 2025 and 2026 bottom line suggests year-over-year improvement of 20% and 16%, respectively. See how QS’ estimates have been revised over the past 90 days.
Image Source: Zacks Investment Research
QS Stock Is Worth Holding Onto
QuantumScape still faces a long road to full commercialization, and much of the recent rally already reflects optimism around its progress. That makes the stock less attractive for aggressive new entries at current levels.
However, for existing shareholders, the combination of technical and operational milestones, partner validation, and improving financial visibility makes a strong case to stay on board. With roughly $1 billion in cash, QuantumScape now expects its runway to extend through 2029, offering an extra year of visibility. Its capital-light licensing model, along with partnerships involving Murata and Corning for ceramic separator scaling, helps reduce the need for massive manufacturing investments.
The progress made in 2025 strengthens the case for holding QS as it enters a more execution-driven phase in 2026. If QuantumScape continues to execute and successfully scales up its technology, the long-term upside will be meaningful. QS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How QuantumScape's 2025 Milestones Set the Stage for 2026
Key Takeaways
QuantumScape Corp. (QS - Free Report) has been one of the more compelling names in the electric vehicle (EV) battery space this year. After years of bold promises, the solid-state battery developer is showing tangible progress and investors have taken notice. QS stock has risen more than 125% year to date, comfortably outperforming the broader industry.
This rally reflects a series of operational, technology and partnership milestones that have moved QuantumScape closer to real-world validation. While commercialization is still some distance away, 2025 has so far marked an important transition phase for the company.
A Manufacturing Breakthrough With the Cobra Process
QuantumScape’s most significant technological milestone this year came with the successful advancement of its Cobra separator process. Announced in June, Cobra entered baseline cell production.
Compared with the earlier Raptor system, the Cobra process is roughly 25 times faster and far more compact. That matters because manufacturing speed, footprint, and efficiency are critical barriers to making solid-state batteries commercially viable.
Volkswagen Deepens Its Commitment
Another confidence booster came from Volkswagen’s (VWAGY - Free Report) PowerCo subsidiary. In July, PowerCo agreed to provide up to $131 million in milestone-based payments over the next two years to support the development of the QSE-5 pilot line in San Jose. This followed an earlier $130 million licensing deal.
The expanded commitment signals that Volkswagen continues to see strategic value in QuantumScape’s technology. More importantly, the milestone-based structure ties funding directly to execution.
First Customer Billings Mark a Turning Point
QuantumScape reported $12.8 million in customer billings in the third quarter. While modest in size, the figure represents an important shift. These billings came from Volkswagen’s PowerCo for joint development work. The company didn’t recognize these billings as revenues, but they still matter.
Customer billings offer a tangible measure of partner engagement and signal that development programs are actively moving forward. After years of pre-commercial status, this is one of the first signs of monetization-related activity.
B1 Sample Deliveries and Ducati Validate QS’s Tech
In the third quarter, QS hit another milestone with the start of B1 sample deliveries. Management confirmed that multiple OEM partners are now evaluating these cells.
The progress was on display at the IAA Mobility Show in Munich, where QuantumScape and Volkswagen unveiled a Ducati V21L motorcycle powered by the company’s QSE-5 cells. Built using its COBRA process, these cells showcased exceptional performance—844 Wh/L energy density, 10–80% charging in just over 12 minutes and the ability to handle 10C continuous discharge.
Eagle Line Signals Manufacturing Progress
Operationally, QuantumScape recently hit another key target. Core equipment for the Eagle Line pilot production facility in San Jose is now fully installed. Management had previously guided for installation to be completed by year-end, and that milestone has been met.
The Eagle Line is a highly automated pilot line designed to support QSE-5 production. With installation complete, the focus shifts to ramping up output and refining processes. This is another concrete step toward manufacturing readiness.
What Do Estimates for QuantumScape Say?
The Zacks Consensus Estimate for QuantumScape’s 2025 and 2026 bottom line suggests year-over-year improvement of 20% and 16%, respectively. See how QS’ estimates have been revised over the past 90 days.
QS Stock Is Worth Holding Onto
QuantumScape still faces a long road to full commercialization, and much of the recent rally already reflects optimism around its progress. That makes the stock less attractive for aggressive new entries at current levels.
However, for existing shareholders, the combination of technical and operational milestones, partner validation, and improving financial visibility makes a strong case to stay on board. With roughly $1 billion in cash, QuantumScape now expects its runway to extend through 2029, offering an extra year of visibility. Its capital-light licensing model, along with partnerships involving Murata and Corning for ceramic separator scaling, helps reduce the need for massive manufacturing investments.
The progress made in 2025 strengthens the case for holding QS as it enters a more execution-driven phase in 2026. If QuantumScape continues to execute and successfully scales up its technology, the long-term upside will be meaningful. QS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.