QuantumScape Stock Is Soaring Wednesday: Here's Why

QuantumScape Corp QS shares are trading higher Wednesday after the lithium-metal battery technology company said its Cobra separator process entered into baseline production.

What Happened: Late Tuesday, QuantumScape announced it reached a milestone in the scale-up of its production capabilities through the integration of its Cobra separator into baseline cell production.

QuantumScape’s Cobra helps increase production speeds with a smaller footprint than previous ceramic separator manufacturing processes.

“Cobra is a step-change innovation in ceramic processing, enabling a major improvement in productivity compared to Raptor — which was already a considerable advancement compared to the previous generation,” said Tim Holme, co-founder and chief technology officer of QuantumScape.

“This advancement is central to bringing our high-performance solid-state battery platform to market at gigawatt scale.”

QuantumScape said Cobra is a big step forward in the scaling of solid-state battery production and the commercialization of its next-generation battery technology. The company expects to continue to improve its production speed, efficiency and scalability with Cobra now in place as the new baseline.

QuantumScape shares reached $6.35 in early trading Wednesday before pulling back a bit. QuantumScape has a 52-week high of $9.52 and a 52-week low of $3.40. Analysts have varying forecasts for QuantumScape stock with most holding Neutral ratings. The Street-high price target is $8 and the Street-low target is $2.

QS Price Action: QuantumScape shares were up 27.4% at $5.52 at the time of publication Wednesday, according to Benzinga Pro.

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Photo: courtesy of QuantumScape.