Why QuantumScape Shares Appeared Before Tomorrow’s Update

What happened

Electric Vehicle (EV) Battery Maker Stocks QuantumScape (NYSE:QS) rose by a double-digit percentage on Tuesday, a day before the company releases its next financial update. The stock closed the day up 10.6%.

So what

Today’s move is unlikely to be directly related to tomorrow’s earnings release. But after the report is released Wednesday at market close, the company will take questions from retail and institutional shareholders. Last month, it produced a research paper on successful fast-charging results with its solid-state battery technology. This is a crucial step towards commercialization and will probably be the subject of several questions tomorrow.

QuantumScape employees in its lab. Image source: QuantumScape.

Now what

In the article, the company showed that its battery cells had the ability to perform hundreds of 15-minute quick charge cycles, which it called a first for this type of battery technology. The company’s cells have completed enough rapid charge cycles to allow an electric vehicle to get 160,000 total miles of driving from a battery with a range of 400 miles.

For its earnings call tomorrow, QuantumScape allowed investors to submit questions and vote for them online. Management, including CEO Jagdeep Singh, plans to answer a list of questions with the most votes.

Investors shouldn’t read too much into today’s stock market movement. Many names in the electric vehicle sector surged today as investors in general returned to more aggressive growth stocks. But based on what management says about a release schedule for its battery technology, it wouldn’t be surprising to see another big move after the quarterly report.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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