If You Buy This Industrial Stock Right Now, Could It Make You a Millionaire?

QuantumScape’s stock fizzled out as it missed its commercialization targets.

But it could finally commercialize its first battery designs next year.

QuantumScape (NASDAQ: QS) , a developer of solid-state batteries for electric vehicles ( EVs ), went public through a merger with a special purpose acquisition company (SPAC) in Nov. 2020. Its stock opened at $24.80 and soared to a record high of $131.67 a month later.

But as of this writing, QuantumScape's stock trades at about $7. It originally planned to commercialize its first batteries in 2024, but it hasn't yet reached that milestone. That sluggish progress drove away its investors, but could it still be a potential millionaire-maker?

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QuantumScape's solid-state batteries offer better thermal stability, shorter charging times, and higher charging capacities than lithium-ion batteries. Its QSE-5 battery, co-developed with Volkswagen (OTC:VWAP.Y) over the past decade, has an energy density of 844 Wh/L (watt hours per liter) and can be rapidly charged from 10% to 80% in under 15 minutes.

QuantumScape initially aimed to manufacture the batteries through a joint venture with Volkswagen, but it shifted toward a simpler licensing model in 2024. It now plans to license its technology to Volkswagen's battery subsidiary, PowerCo, as well as other automakers, to generate a recurring stream of higher-margin royalty and licensing revenues.

QuantumScape upgraded its separator process over the past year to improve its cell reliability, equipment productivity, and total yields. It's been producing higher-volume, near-production "B-sample" cells at its Eagle Line pilot production line, and it expects its cash runway to last through 2029, giving it enough time to expand its commercial licensing business.