QuantumScape Corporation (QS): A Bull Case Theory

We came across a bullish thesis on QuantumScape Corporation (QS) on r/ValueInvesting Subreddit by allthewayne. In this article, we will summarize the bulls’ thesis on QS. QuantumScape Corporation (QS)’s share was trading at $7.02 as of 3rd July.

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An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems.

QuantumScape (QS) may be one of the most compelling deep value plays in the battery tech space, largely due to its misunderstood positioning and recent inflection point in execution. Once heavily criticized for delayed timelines and over-promises under the previous CEO, the company has since turned a corner under new leadership, who has consistently met targets while deliberately managing expectations.

The core question around solid-state battery (SSB) startups has always been: can they scale? Until recently, this uncertainty weighed heavily on QS’s valuation, which has been priced as if it were just an IP holder. However, the recent integration of “Cobra,” a next-generation manufacturing line with 25x the throughput of its predecessor and full compatibility with gigawatt-scale production, fundamentally de-risks this concern.

With a smaller footprint and built-in ceramic quality control, Cobra not only proves QS’s scalable production capability but also sets a new standard for ceramic battery manufacturing.

Looking ahead, QuantumScape has several near-term catalysts. It’s in talks with two major OEMs, aiming to sign at least one this year, and plans to ship Cobra-produced samples with a mature spec sheet—likely demonstrating even better energy density and charge performance.

One OEM is widely speculated to be Tesla, with subtle hints suggesting as much: evasive comments on earnings calls, matching cell sizes, and the involvement of QS board member JB Straubel.

Backed by Volkswagen and operating with zero debt, QuantumScape now looks well-positioned to lead in a future that will depend on safer, higher-capacity batteries for EVs, eVTOLs, robotics, and grid support. The upside from here could be substantial.

Previously, we covered a bullish thesis on QuantumScape Corporation (QS) by beerion in April 2025, which highlighted the company’s solid-state battery innovation, anode-free architecture, and deep asymmetry in valuation driven by low market-implied odds of success. The company’s stock price has appreciated by approximately 85% since our coverage. This is because the thesis partially played out, with execution risks beginning to diminish. allthewayne shares a similar view but emphasizes the recent manufacturing breakthrough and leadership credibility as a turning point.

QS isn’t on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of QS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.