Former EV high-flyer surges on battery breakthrough

Former EV high-flyer surges on battery breakthrough originally appeared on TheStreet.

Comebacks hit different on Wall Street.

Everyone loves a redemption arc, especially when it’s tied to a once high-flying stock.

After the Covid-induced stock market boom, the hangover hit hard.

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Zero rates and stimulus cash effectively pumped everything from EVs to meme stocks. However, once the Fed started hiking and inflation kicked in, the air came out fast.

Many speculative names, especially those without profits, took the biggest hits.

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EV stocks, whether pure plays or pick-and-shovel plays, jumped on hype, future promises, and Tesla’s glow, but reality hit hard, and they’re still mostly under pressure.

One beaten-down EV stock, though, is finally making noise again, thanks to a major step forward in breakthrough battery tech.

QuantumScape  (QS) stock burst onto the market in late 2020 as one of the most hyped EV pick-and-shovel plays.

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Shares began trading at $24.80 after its SPAC merger on November 27, 2020, peaking at $132.73 on December 22 (a whopping 435% gain) before pulling back.

Backed by Volkswagen and Bill Gates, QuantumScape promised a major battery breakthrough.

By using a solid-state design with a ceramic layer, the company aimed to block dangerous lithium spikes and deliver more power, faster charging, and better safety than liquid-based cells.

In other words, you get much more juice in the same space, blazing fast charging, and no overheating.

Think of it like swapping your old smartphone charger for a high-powered supercharger; what took half an hour now finishes in 10 minutes flat.

Needless to say, it’s a massive deal for pushing EVs into the mainstream.

However, turning those lab dreams into factory reality was much harder than expected. QuantumScape hit wall after wall due to manufacturing delays, yield issues, and tech hitches.

As timelines dragged and cash burned fast, the hype faded. By mid-2022, shares were deep in the single digits, losing more than 80% in value.

However, yesterday’s development suggests that it could potentially mount a major comeback.

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QuantumScape’s next-gen Cobra separator is finally part of its core production line. That marks the first time Cobra’s been used in full-speed, high-volume manufacturing, a massive leap in scaling up for gigafactory-level output.

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Cobra is built to replace the old Raptor setup, and it’s a major upgrade.

It quickens heat treatment by 25 times and takes up much less space.

That makes production much faster and more compact, which is the boost QuantumScape needs to hit scale and keep its expenses in check.

Also, Cobra isn’t just quicker; it’s a lot smarter, too.

Shrinking the footprint and streamlining thermal processing bring QuantumScape closer to building a full-scale, end-to-end battery plant.

That sort of progress gives it more street cred with automakers and makes it easier to lock in future deals and funding.

Following the development, QuantumScape stock went parabolic.

In pre-market trading today, the stock has gained over 43% to open at $6.17. Year-to-date, though, the stock is down 17%. This development could spark a major turnaround.

Related: Veteran Wall Street firm makes surprise call on tech stocks

Former EV high-flyer surges on battery breakthrough first appeared on TheStreet on Jun 25, 2025

This story was originally reported by TheStreet on Jun 25, 2025, where it first appeared.