If You Buy This Industrial Stock Right Now, Could It Make You a Millionaire?

QuantumScape (NASDAQ: QS), a developer of solid-state batteries for electric vehicles (EVs), went public through a merger with a special purpose acquisition company (SPAC) in Nov. 2020. Its stock opened at $24.80 and soared to a record high of $131.67 a month later.

But as of this writing, QuantumScape's stock trades at about $7. It originally planned to commercialize its first batteries in 2024, but it hasn't yet reached that milestone. That sluggish progress drove away its investors, but could it still be a potential millionaire-maker?

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When will QuantumScape start generating revenue?

QuantumScape's solid-state batteries offer better thermal stability, shorter charging times, and higher charging capacities than lithium-ion batteries. Its QSE-5 battery, co-developed with Volkswagen (OTC:VWAP.Y) over the past decade, has an energy density of 844 Wh/L (watt hours per liter) and can be rapidly charged from 10% to 80% in under 15 minutes.

QuantumScape initially aimed to manufacture the batteries through a joint venture with Volkswagen, but it shifted toward a simpler licensing model in 2024. It now plans to license its technology to Volkswagen's battery subsidiary, PowerCo, as well as other automakers, to generate a recurring stream of higher-margin royalty and licensing revenues.

QuantumScape upgraded its separator process over the past year to improve its cell reliability, equipment productivity, and total yields. It's been producing higher-volume, near-production "B-sample" cells at its Eagle Line pilot production line, and it expects its cash runway to last through 2029, giving it enough time to expand its commercial licensing business.

Could QuantumScape generate millionaire-making gains?

If QuantumScape sticks to that plan, analysts expect its revenue to rise from zero in 2026 to $51.2 million in 2027 and $98.6 million in 2028. With a market cap of $4.3 billion, its stock might seem overvalued at 43 times its 2028 sales.

However, the solid-state battery market could grow at a 47.57% CAGR from 2026 to 2034, according to Fortune Business Insights. If QuantumScape maintains its first-mover advantage in that booming market, its sales could skyrocket over the next decade.

If QuantumScape matches analysts' estimates through 2028 and grows its top line at a 30% CAGR through 2036, its revenue would hit $804 million by the final year. If it trades at 30 times its current year's sales by 2036, its market cap would rise to $24.1 billion.

That would be a near-sixfold gain over the next decade, but it probably wouldn't turn a $10,000 investment -- or even a $100,000 one -- into over $1 million. That said, it could still beat the market if it successfully commercializes its first battery designs and gains more customers.

Leo Sun 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.