EV battery maker QuantumScape adds another 20% amid Uber-Lucid deal

Shares of QuantumScape, a mid-cap maker of solid-state EV batteries, soared almost 20% yesterday, July 17. The trigger was likely excitement around an announced deal between Uber and Lucid to compete with Tesla in the robotaxi market. Since late June, QuantumScape stock has tripled on the announcement that the company had made "impressive strides" in advancing its technology, which could make EVs cheaper. 

QuantumScape rose 19.8% yesterday to $13.60 per share, its highest close since mid-2022. In after-hours trading, it extended the gains, adding another 5%.

The gains were likely triggered by the deal between taxi company Uber and EV manufacturer Lucid. Yesterday, Uber said it aims to deploy 20,000 or more Lucid luxury SUVs equipped with the Nuro Driver Level 4 autonomy system over six years in dozens of markets around the world and will buy $300 million worth of Lucid shares.

The deal adds to the momentum that QuantumScape stock has ridden since late June. On June 24, the company announced that its Cobra separator process had entered “baseline production.” As the Motley Fool notes, the company's stock price has roughly tripled in the wake of the Cobra announcement. 

Solid-state EV batteries promise lower costs, more per-charge range, and a better safety record, writes Barron's. The publication says they could represent a "panacea" for EVs, making them more capable and cheaper than comparable gasoline-powered cars. The Cobra technology is said to bring QuantumScape closer to producing solid-state batteries that could be used to produce EVs.

Lucid has already announced its intention to use solid-state batteries in its EVs, writes the Motley Fool. Still, the company has not specified from whom it would buy them.

Since the beginning of the year, QuantumScape shares have rocketed 162%. Most of the growth has come after June 24. After the Cobra announcement, Baird Equity Research put out a note that advised caution. "We seek additional details on the go-to-market strategy before becoming more constructive," Baird analyst Ben Kallo said. 

Wall Street is lukewarm on the stock's further growth, as well, according to MarketWatch. Of the seven analysts who cover QuantumScape, only one rates it a "buy." In addition, there are four "holds" and two "sells." The average target price of $6.83 per share is below current quotes.

The AI translation of this story was reviewed by a human editor.