QuantumScape (NYSE: QS) just ripped higher, climbing 68% in June and hitting new 2025 highs this week. The move comes after the company announced a key production breakthrough with its Cobra separator process — a major step in its push to commercialize next-gen solid-state EV batteries.
But with short interest rising and no revenue yet on the board, traders are asking: is this the real deal, or just another speculative run that ends in a flush?
The Cobra Catalyst
Last month, QuantumScape confirmed that its Cobra separator technology is now integrated into baseline battery cell production. This upgrade boosts heat treatment speed by 25x and slashes the manufacturing footprint — a critical improvement for gigafactory-scale output.
Read more: QuantumScape’s Bold Shift: What’s Next?
That announcement lit a fire under the stock. QS shares spiked from the $4s to over $8 in a matter of weeks, with more than 50 million shares traded in a single session on July 8 — over double the average daily volume. The company says it’s on track to send QSE-5 B1 samples to automakers later this year, setting up field testing in 2026.
Still Pre-Revenue, Still Speculative
Here’s the rub: QuantumScape still hasn’t generated meaningful revenue. Its entire valuation hinges on the assumption that it can scale this battery tech and sign licensing deals — without running into production snags or delays.
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Volkswagen’s battery unit, PowerCo, is on board as an anchor customer. But commercial output is still a year away, at best. Between now and then, expectations will carry this stock — not earnings.
The Short Interest Setup
Another driver of this run? Short positioning.
QS has short interest around 13.3% of the float at the time of writing (although this is a notoriously variable metric). That’s more than enough to squeeze traders leaning too hard against the breakout. Add in a highly speculative investor base and big moves become self-fulfilling — until they’re not.
This is a setup where both longs and shorts can get burned. We’ve seen this script play out before. Without real numbers behind the hype, one tweet, downgrade, or earnings miss can send it spiraling back toward support.
Key Levels to Watch
- Resistance near the 52-week high at $9.52
- Short-term support around $7.50–$8.00
- Breakdown risk toward $5.50 if momentum fades
All eyes now turn to July 23, when QuantumScape reports Q2 results. Management will take pre-submitted investor questions, and traders will be looking for updates on production capacity, licensing progress, and field test timelines.
The Bottom Line
QuantumScape has the narrative — battery tech, EV hype, and a flashy new production process. It also has no real revenue and a lot of built-in expectations.
This isn’t a long-term hold right now. It’s a trade. A breakout setup that checks the boxes on volume, catalyst, and trend — but demands tight risk management and zero complacency.
Ride the momentum if you want. Just don’t forget how fast these trades can reverse.
This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.
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