Battery shares have dominated headlines as traders search for the subsequent huge breakthrough in vary and charging pace. Stable-state batteries are on the heart of that pleasure, promising sooner charging, greater power density, and safer efficiency than right now’s lithium-ion know-how.
QuantumScape (QS) is without doubt one of the main hopefuls on this race. And now it has drawn contemporary consideration after Ray Dalio’s Bridgewater Associates quietly purchased a small stake, about 266,000 shares price roughly $3.3 million, throughout Q3 2025. The acquisition instantly raised questions: Is that this an indication of rising institutional confidence or just a tiny speculative transfer from the world’s largest hedge fund?
For traders watching the solid-state battery story unfold, right here’s what Bridgewater’s transfer may imply.
QuantumScape is a solid-state battery startup making an attempt to revolutionize EV power storage. Its purpose is to make lithium-metal batteries that cost ultra-fast and maintain extra power (think about a Tesla (TSLA) battery doubling its vary). The corporate has no actual income but because it’s nonetheless in growth, nevertheless it has prime traders like Volkswagen (VWAGY) and PowerCo and strategic companions to bankroll the R&D.
With a modest $9 billion market cap, QS has had an enormous yr. The inventory greater than doubled, leaping from round $5 to the mid-teens earlier than settling close to $11.50. That surge got here from upbeat partnership bulletins, contemporary tech milestones, and rising pleasure about solid-state battery potential.
Following the rally, standard valuation metrics look wealthy. For instance, QS trades at roughly 6.6x e book worth, far above the 1.6x business median. In plain language, traders are paying greater than six occasions what the corporate is price on its stability sheet, greater than triple what friends pay.
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Bridgewater just lately stepped in and revealed a small however noticeable improve in its QS place. The agency first purchased a tiny slice of QS in early 2022, and the significant transfer got here in Q3 2025. Bridgewater ended the quarter with about 266,200 shares, roughly a $3.28 million stake, after holding nearly nothing earlier than. Even so, QS nonetheless represents solely about 0.01% of Bridgewater’s portfolio, making it a comparatively small wager for the fund.
The addition indicators some confidence, nevertheless it’s only one knowledge level. Bridgewater has adopted QS for years and easily determined so as to add a bit extra just lately. There was no huge public endorsement, and the market hardly reacted since QS was already climbing.
In actuality, Bridgewater’s transfer largely provides a little bit of buzz and may immediate different traders to take one other look, nevertheless it gained’t shift QS’s fundamentals in a single day.
QuantumScape’s newest financials present an organization that’s nonetheless firmly in growth mode however lastly beginning to see early indicators of business traction. The corporate reported no product income in Q3, which is anticipated for a pre-commercial battery startup, nevertheless it did generate $12.8 million in buyer “billings.” These billings are primarily invoices tied to joint growth work with companions like Volkswagen, not true gross sales but, however a significant step ahead from zero a yr in the past.
On the expense facet, QS continues to burn money because it invests closely in R&D and manufacturing scale-up. It posted a GAAP internet lack of $105.8 million, with working money outflow of about $63.7 million and one other $9.6 million going towards capex.
The excellent news is that the corporate’s stability sheet stays robust. QuantumScape ended the quarter with roughly $1 billion in liquidity, together with money, equivalents, and marketable securities, thanks partly to a $263 million fairness elevate earlier this yr that prolonged its runway into 2029.
Administration additionally tightened full-year loss steerage, suggesting some price self-discipline whilst growth ramps.
Wall Avenue stays divided on QuantumScape, and most analysts are nonetheless cautious. A number of corporations have raised their value targets however aren’t able to name QS a “Purchase,” fairly but. HSBC lifted its goal to $10.5 however lower the inventory to “Promote,” citing excessive danger regardless of the upper valuation estimate. TD Cowen boosted its goal to $16 whereas preserving a “Maintain,” and Baird maintained a “Impartial” view with an $11 goal.
On the bearish finish, Goldman Sachs continues to be one in every of QS’s hardest critics, sticking to a $2.50 goal and a “Sturdy Promote.” Total, the consensus lands round $9 per share, which is considerably above its present value of $11, with a broader “Promote” outlook.
Analysts additionally don’t count on significant GAAP income from QuantumScape anytime quickly. Barchart knowledge level to a full-year EPS of about -$0.74 for 2025 and -$0.64 for 2026, with income estimates close to zero in 2025 and solely round $4 million in 2026. That small bump merely displays early licensing and growth charges, not business product gross sales, reinforcing the view that QS stays a long-term, high-risk story.
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On the date of publication, Nauman Khan didn’t have (both immediately or not directly) positions in any of the securities talked about on this article. All data and knowledge on this article is solely for informational functions. This text was initially printed on Barchart.com
