Is QuantumScape Stock a Buy Now?
QuantumScape (NYSE: QS), a developer of solid-state lithium metal batteries, is a difficult stock to value because it hasn't commercialized any of its products or generated any meaningful revenue yet. Before it went public by merging with a special purpose acquisition company (SPAC) in November 2020, it claimed it could commercialize its first batteries by 2024. It also predicted its revenue would rise from $14 million in 2024 to $275 million in 2026.
But today, EV makers are still waiting for its first solid-state batteries, which should provide better thermal resistance, shorter charging times, and higher charging capacities than liquid-electrolyte lithium-ion batteries. That's why it remains a divisive stock -- even after it pulled back nearly 97% from its all-time high of $131.67 on Dec. 22, 2020. So should investors accumulate QuantumScape's stock as a contrarian play before it commercializes its first batteries?
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Source Fool.com
