Is QuantumScape a Lost Cause?
2026-09-28 13:30
•James Brumley •The Motley Fool
••• ••••• Axe Cap view
QuantumScape’s Mountain to Climb
QuantumScape trails established EV players and risks running out of cash before catching up.
QuantumScape promised a leap forward with solid-state batteries offering longer driving range and faster charging. But with competitors like BYD and Toyota pushing commercialization aggressively, QS looks like it’s falling behind. Burning $100 million a quarter with just $900 million in reserves means the runway is tight. VW’s delay on a planned $7 billion battery plant shakes confidence further, since VW is QS’s biggest industrial partner. While solid-state tech is exciting, waiting for it to prove out could be costly. South African investors shouldn’t expect a local boost from this story via the rand or JSE names right now. Instead, it underscores the risk of backing unproven tech companies in a hot sector. QS could still catch a break if VW revives its commitment or breakthrough news arrives, but that feels optimistic today. this is just our opinion and not financial advice
Avoid QuantumScape at current valuation given cash burn and slowed partnerships. Prefer staying invested in BYD where technology and scale visibly drive value. Keep an eye on USD/ZAR volatility as global tech shocks may ripple here.
- QS
- BYDDY
- USD/ZAR
- VW could accelerate battery plant plans
- Sudden technology breakthrough from QS
6/10
QuantumScape's solid-state lithium battery technology promised a 20-25% boost in EV driving range, but the company has fallen significantly behind competitors in commercialization. With competitors like BYD, Toyota, and Nissan advancing faster to market, QuantumScape faces a challenging path forward. The company is burning ~$100 million quarterly with only $900 million in cash reserves, and Volkswagen's postponement of a $7 billion battery plant investment until 2029 further complicates its prospects.
Our take is based on reporting first published by The Motley Fool.