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One of the leaders in electric vehicle (EV) battery technology just reached an important milestone. Indeed, QuantumScape (NYSE:QS) has struggled over the past year amid high volatility, but QS stock is rising steadily today on news that the company has begun shipping its Alpha-2 prototype battery cells.
Just three months into 2024, QuantumScape has already achieved a meaningful goal for the year — one that will likely prove to be a significant growth driver. Shares are up 8% on this update, with the market reacting well to the news.
Does this mean that QS stock is worth betting on as investors ponder the best undervalued plays for 2024? It certainly seems like a potential breakout contender. Let’s take a closer look at this recent development and assess what it means for QuantumScape’s future.
What’s Happening With QS Stock?
News of this shipping milestone sent QS stock up as soon as markets opened today. This surge has pushed QuantumScape into the green for the week and, if it continues, that could extend to the entire month.
Why does this matter for QuantumScape? Well, the company discussed the Alpha-2 prototype solid-state battery cells in a statement this morning:
“Alpha-2 prototypes are a significant milestone on the roadmap to deliver QSE-5, QuantumScape’s first planned commercial product. QuantumScape entered the automotive qualification process in December 2022 after shipping A0 prototypes to customers. Alpha-2 prototypes integrate many of the company’s significant component improvements made over the last year. The six-layer Alpha-2 prototype is more energy-dense than the earlier 24-layer A0 prototype.”
Given the volatility QS stock has displayed over the past year, some investors remain skeptical about QuantumScape’s growth prospects. However, as InvestorPlace contributor Chandler Capital notes, shares exceeded expectations following their public debut. Now, the company has provided investors with a key catalyst that shows it’s making progress getting its innovative battery cells to market.
This news could be exactly what QS stock needs to finally turn around and start making up the ground it lost in 2023. If the momentum continues, 2024 could be an excellent year for this battery player.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
