If You'd Invested $10,000 in QuantumScape Stock at Its IPO, Here's How Much You'd Have Today
Electric vehicle (EV) stocks have captivated investors ever since Tesla stock skyrocketed in 2020. However, more recently the sector has floundered as demand for EVs has weakened and prices for electric vehicles have come down.
One of the stocks that investors have gotten excited about is QuantumScape (NYSE: QS), a development-stage maker of solid-state batteries, which is a technology that offers greater range and faster charging times for EV batteries.
Image source: Getty Images.
How has QuantumScape performed since it went public?
QuantumScape stock has fallen sharply from its peak, which came shortly after it went public in 2020 via a special purpose acquisition company (SPAC) merger at a time when EV stocks were soaring.
Three-and-a-half years later, QuantumScape still has no revenue to report as it's still developing its technology, and the stock is down 77% from where it opened on its first trading day.
Though the company still doesn't have any revenue, it has made progress on the development front. QuantumScape stock soared at the beginning of the year after it was revealed its battery cells were able to charge to more than 95% capacity after over 1,000 charging cycles, a positive sign and a key step forward in its partnership with Volkswagen, its biggest investor.
What would $10,000 invested in QuantumScape be worth today?
QuantumScape went public in November 2020, so let's see what $10,000 invested then would be worth now. Using $24.80 (its opening price at that time) as a reference, we can get an answer. Based on that price, the value of the QuantumScape investment would have shrunk to just $2,330.
With no revenue to speak of still and an unproven technology, QuantumScape remains highly risky. While it could soar if its solid-state technology takes off, the stock is likely to struggle until it can deliver meaningful revenue.
Should you invest $1,000 in QuantumScape right now?
Before you buy stock in QuantumScape, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and QuantumScape wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $581,764!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of May 13, 2024
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Volkswagen Ag. The Motley Fool has a disclosure policy.
