The S&P 500 Posts a Solid Day, with QuantumScape as a Major Standout
On Monday, the S&P 500 posted a solid day of trading, with several stocks making significant gains. One of the standout performers was QuantumScape (NYSE: QS), a company that specializes in developing solid-state EV battery technology. As of the market close, QuantumScape’s stock price had increased by 9.5%, and at certain points during the day, it traded more than 13% higher.
Why is QuantumScape Performing So Well?
QuantumScape’s strong performance can be attributed to a combination of factors. One reason is that the company has been gaining momentum over the past few months. In 2025 alone, its stock price has increased by nearly 27%, with gains in every trading session. This suggests that investors are becoming increasingly confident in the company’s prospects.
Another factor contributing to QuantumScape’s success is a recent report about President-elect Donald Trump’s tariff plans. According to a Washington Post article, Trump is considering a narrower tariff plan that focuses on raising tariffs for specific goods and services. While it’s unclear which industries would be affected, automakers are likely to remain exempt.
This news has had a positive impact on several key automakers, including Volkswagen, which has a close relationship with QuantumScape. Shares of Volkswagen were up by more than 3% as of mid-afternoon on Monday. Other major automakers like General Motors and Lucid Group also saw significant gains.
How Will the Tariff Issue Affect QuantumScape’s Business?
While the tariff issue is still unclear, it’s likely to have a significant impact on companies that rely heavily on international trade. As a company that specializes in developing solid-state EV batteries for automakers, QuantumScape may be affected by any changes to the tariff structure.
However, it’s worth noting that Trump disputed the report shortly after it was published, claiming that the story "incorrectly states that my tariff policy will be pared back." This has left investors wondering about the potential impact of the tariff issue on QuantumScape’s business.
Despite this uncertainty, QuantumScape is still essentially a pre-revenue company that is at least a couple of years away from generating significant sales. However, if the commercialized versions of its solid-state electric vehicle batteries are successful, it will likely rely on business from many different automakers. As such, it’s essential to follow the latest developments on the tariff issue over the coming months.
Should You Invest in QuantumScape Right Now?
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Ultimately, whether or not to invest in QuantumScape is a personal decision that depends on your individual financial goals and risk tolerance. It’s essential to do your own research and consider multiple perspectives before making any investment decisions.
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About the Author
Matt Frankel is a financial journalist and expert who has written extensively on personal finance, investing, and entrepreneurship. He has positions in General Motors and QuantumScape.
The Motley Fool’s Disclosure Policy
The Motley Fool recommends General Motors and Volkswagen Ag and recommends the following options: long January 2025 $25 calls on General Motors.