Should You Buy the Dip on QuantumScape?
Key Points
QuantumScape's solid-state battery technology isn't producing revenue yet, but could soon.
The company reported a net loss of $435 million in 2025.
- 10 stocks we like better than QuantumScape ›
It's been a rough start to 2026 for QuantumScape (NASDAQ: QS). The stock is down over 30% year to date and more than 60% from its 52-week high. For growth-minded investors, the question is whether this significant dip presents a compelling buying opportunity or signals a warning to run the other way.
The answer will likely depend on QuantumScape's upcoming milestones, which should arrive before 2027. So is its lower price a trap or an opportunity?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
A technological edge
QuantumScape focuses on solid-state lithium-metal battery technology. The company's stated goal is to create batteries that enable greater energy density, faster charging, and enhanced safety, all while supporting a lower-carbon future.
It has progressed to field testing, where its QSE-5 B-sample cells are hopefully living up to expectations. The company's Eagle Line pilot production equipment is also being installed on time. This introduction represents a significant leap into future commercial viability.
Image source: Getty Images.
Losses are adding up, but liquidity is strong
QuantumScape ended last year with $911 million in total liquidity, which means the company's runway is strong even as losses mount. For the full year 2025, the net loss reached $435 million with no real revenue. Share dilution is also a concern.
Its liquidity position should be enough to weather the storms on the path to full production, but the company needs to begin generating real revenue fairly soon, or investors may jump ship.
The battery market is charging up
The company's burn rate is, fortunately, overshadowed by the huge opportunity at hand. The solid-state battery market is expected to have a compound annual growth rate (CAGR) of 56% or more through the early 2030s. If QuantumScape can stay on its timeline to be production-ready by the end of 2026, then revenue should be meaningful heading into 2027.
The company is near an inflection point
It's a waiting game right now for QuantumScape's investors. The company needs its field tests with its partner PowerCo -- owned by Volkswagen -- to demonstrate that its batteries meet expectations and are production-ready.
The company is still years away from profitability, but the inflection point is near, and the results of the field testing will make or break this stock. This stock is still a high-risk speculative investment.
After the field test results are released, early investors will either rejoice or be forced to reevaluate their positions. Buying the dip now isn't buying on fundamentals; it is buying on the belief that QuantumScape's batteries will live up to the hype.
If we're assuming a best-case bull scenario, then the stock is inexpensive and undervalued. Investors who take a position in it should anticipate high volatility.
The company's beta is 2.6, with 1.0 meaning it moves in tandem with the overall market. Ultimately, if QuantumScape's technology is ready for prime time, buying the dip now is more than advantageous.
Should you buy stock in QuantumScape right now?
Before you buy stock in QuantumScape, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and QuantumScape wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $530,233!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,682!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 10, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
