It certainly hasn’t been easy for investors of electric vehicle (EV) battery manufacturer QuantumScape (NYSE:QS) to stay in the trade. QS stock has been volatile and will likely stay that way. However, you’ll be in the company of financial whales if you invest in QuantumScape, and you’ll also hold a stake in next-generation EV battery technology.
Do you believe that clean-energy vehicles are the future? If so, then you don’t actually have to wager on one particular EV manufacturer. Instead, you can bet on QuantumScape, which is working tirelessly to develop the gold standard of EV batteries.
Just be aware that QuantumScape won’t likely demonstrate its full value proposition for a few years. Hence, don’t worry about 2023 too much and instead set your sights on 2025, and on huge potential profits.
QS Stock May Already Be Turning a Corner
First, I have to acknowledge the bad news. QS stock is far below its 52-week high of $22.21, and the past year wasn’t a stellar one for QuantumScape’s loyal investors.
The company didn’t do anything “wrong,” really. However, 2022 wasn’t a great year to be invested in former growth names, or in pre-revenue companies in general. It was a year for defensive stocks, not speculative ones.
Yet, QS stock has rebounded recently, rallying from $5 and change a month ago to more than $9 recently. So, on a multi-year time frame, a return to $20 and then to $25 isn’t too much to ask for.
Besides, you can join some financial whales if you invest in QuantumScape. The company hasbig-time investors like Bill Gates and Volkswagen (OTCMKTS:VWAGY). Also, BlackRock (NYSE:BLK) and Vanguard were reported to hold shares of QuantumScape.
QuantumScape’s Battery Tech Could Change the Game
You might not know this, but QuantumScape has already established itself as a pioneer. The company “developed the industry’s first anode-less cell design, which delivers high energy density while lowering material costs and simplifying manufacturing.”
As the company proudly points out, QuantumScape’s anode-free lithium-metal battery technology “can offer compelling benefits over conventional lithium-ion batteries.” Among those potential benefits is greater energy density, which could result in a faster charge time.
Moreover, QuantumScape isn’t relenting in its drive to innovate next-gen battery technology. The company has already begun shipping 24-layer prototype samples of its battery cells to automotive manufacturers. Will famous EV manufacturers favor batteries with so many cells? If so, QuantumScape’s growth story should accelerate over the coming years.
So, Here’s My QS Stock Price Prediction for 2025
If you can handle share-price volatility, then QS looks like a steal at $10 or less. A $25 price target looks like a reasonable target for 2025.
There are no guarantees, of course, but QuantumScape’s battery technology is unique, and the company’s products could become a favorite among automotive manufacturers. Therefore, risk-tolerant investors can choose to hold shares of QuantumScape as a multi-year bet on future generations of EV battery innovation.
On the date of publication, David Moadel did not have (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.