Battery tech is the engine quietly driving the electric vehicle (EV) revolution, and the next leap is coming from lithium metal cells. With their high energy density and fast-charging potential, this market is set to expand at a 22% CAGR, growing from $20.9 billion in 2025 to $124.8 billion by 2034, riding the wave of global EV adoption and R&D momentum.

That’s where QuantumScape Corporation (QS) is trying to make its mark. The company is developing solid-state lithium-metal batteries that promise faster charging, longer life, and better safety. Just last year, it reached a major milestone by shipping its B0 prototype cells for advanced testing, marking its first near-production battery built using the “Raptor” separator process. Up next is the “Cobra” separator process, designed to scale separator manufacturing for commercial production.

Still, QuantumScape remains pre-revenue and has burned cash since its 2020 debut, with profitability a distant spark. Yet Evercore ISI’s Chris McNally stays bullish, setting an $8 target, the Street’s highest.

So, can QS stock reach the target and light up the battery game?

About QuantumScape Stock

California-based QuantumScape Corporation (QS) is set to revolutionize energy storage and drive the shift to a decarbonized future, starting with transportation. Founded in 2010, the company is tackling the limitations of current lithium-ion batteries by developing a solid-state solution that offers faster charging, longer-lasting power, and enhanced safety. At the heart of this innovation is a patented ceramic electrolyte separator, allowing for the use of lithium-metal anodes that are 10 times more energy-dense than conventional alternatives.

However, QuantumScape’s battery tech is still in development phases, with commercialization years away. As excitement has faded since its public debut, investors have bailed. QS trades at a fraction of its former high. Down 70% in three years and nearly 24% over the past three months, investors are watching closely for any spark that could reignite the hype. 

QuantumScape’s Q1 Earnings Results

QuantumScape dropped its Q1 2025 earnings report on April 23, reminding investors it is still firmly in the pre-revenue phase. The company continues to post losses, but there is a silver lining. Net loss narrowed to $114.4 million from $119.1 million a year ago, showing a measured pace of cost control. Loss from operations shrank 6.3% annually to $123.6 million. Its per-share loss of $0.21 matched Wall Street's estimates.

Adjusted EBITDA landed at negative $64.6 million, a modest improvement from the prior year’s loss of $76.2 million. 

QuantumScape ended Q1 with $860.3 million in cash and marketable securities. Better yet, the company is debt-free, reinforcing its lean financial stance. The company expects this liquidity to last into the second half of 2028, with any future customer inflows or capital raises potentially stretching that runway further. 

QuantumScape’s 2025 roadmap is gaining traction. The company is ahead of schedule, integrating its Cobra separator process into baseline production - expected by Q2 - and remains on target to ship QSE-5 BI samples, a key step in proving real-world performance. Adding momentum, QuantumScape announced a potential partnership with Murata Manufacturing (MRAAY), a ceramics veteran. If this collaboration takes flight, it could accelerate QuantumScape’s push from lab to market.

What Do Analysts Expect for QuantumScape Stock?

QuantumScape’s stock hit turbulence after Baird clipped its price target from $8 to $6, citing muted Q1 results and cloudy outlooks. While Baird maintained a “Neutral” rating, investor nerves frayed over stalled momentum and uncertainty surrounding the Murata partnership. 

Overall, the stock has a consensus rating of “Hold.” Of the eight analysts offering recommendations, one advises a “Strong Buy,” four advocate a “Hold,” and the remaining three analysts maintain a “Strong Sell.”

While the average analyst price target of $4.79 indicates 21% potential upside from the current price levels, the Street-high price target of $8 suggests that QS could rally as much as 102% from here.