QuantumScape Corporation (QS)

[WeTheMarket]

News out QuantumScape defended by Morgan Stanley after earnings sell-off
May 12, 2021 11:22 AM, By: Clark Schultz, SA News Editor

- Morgan Stanley says QuantumScape (QS -7.3%) turned in a solid quarter that featured a positive update on its cash position. The firm sees the update on tech milestones as significant.
- Analyst Adam Jonas: "QS continues to progress on the path to multi-layer commercialization. QS announced it has successfully tested 4-layer cells in a 70x85mm form factor (a commercially relevant cell size – vs. it’s prior testing of 30x30mm cells) sharing test results on approx. 450 cycles (and counting) at 25°C with over 90% capacity retention at 1C charge/discharge rates which it says is similar to the 4 layer cells tested in February and the single-layer cells tested in December. The company says it is on track to test 8 to 10 layers by year-end and to deliver 'commercially relevant prototype samples by 2022.' The company also announced it has successfully tested coin-sized cells with zero external pressure which they say 'was conducted at 1C/1C, 30 °C and 100% depth of discharge, with a Li-free anode.' They claim this has promise in the consumer electronics industry where zero external pressure is critical for packaging and cost."
- The firm keeps an Overweight rating and price target of $70 (more than 100% upside) on QS as it points to the unique position of the company vs. battery peers.