Why QuantumScape Corporation (QS) Soared On Wednesday

We recently published a list of While Market Bleeds, These 10 Firms Soar. In this article, we are going to take a look at where QuantumScape Corporation (NYSE:QS) stands against other best-performing stocks.

Quantumscape saw its share prices grow by 8.48 percent on Wednesday to finish at $4.3285 apiece as investor sentiment was fueled by expectations that electric vehicle sales are expected to grow this year amid the looming end of tax credits.

According to a study by Princeton University, President Donald Trump’s “One Big Beautiful Bill Act,” which includes a salient point seeking to end EV tax credits by the end of the year, would likely boost EV sales prior to the end date.

A line of electric vehicles parked in front of a research & development building in San Jose, California.

This, in turn, could support sales of QuantumScape Corporation (NYSE:QS), one of the leading EV battery manufacturers in the US.

However, the study said that without EV tax credits, EV sales would decline by 40 percent and planned battery cell manufacturing would result in large overcapacity in the long term, with US production capacity expected to hit 400 GWh per year, well in excess of demand.

Overall, QS ranks 5th on our list of best-performing stocks. While we acknowledge the potential of QS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QS and that has 10,000x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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