QuantumScape (QS) shares extended gains further on Thursday to print a new 52-week high of $13.79 as investors continued to pile into the NYSE-listed firm ahead of its earnings next week. 

Advanced battery stocks have been in focus this year amid growing optimism around next-gen EV technology and commercial scalability. 

Including today’s gain, QuantumScape is up 300% versus its year-to-date low set in early April.

Why Has QuantumScape Stock Soared in Recent Weeks?

QuantumScape has recently disclosed plans of reporting its second-quarter financial results on July 23. Consensus is for it to lose $0.20 on a per-share basis in Q2. 

While the earnings expectations suggest QuantumScape remains far from achieving profitability, hitting or beating the number would still be a win for investors as it translates to meaningful improvement from the $0.25 a share the company lost in the same quarter last year. 

QuantumScape stock has experienced a meteoric rally in recent weeks partly because it successfully integrated its Cobra separator process into baseline cell production. 

This improves manufacturing efficiency by a factor of 25 and positions the solid-state rechargeable lithium metal batteries maker closer to commercial-scale deployment. 

Fundamentals Fail to Justify QS Shares Valuation

QuantumScape is broadly expected to narrow its per-share loss by about 20% in its fiscal Q2. Still, the battery stock remains unattractive to own due to valuation concerns. 

For a pre-revenue company in its development stage only, a price-book (P/B) ratio of nearly 5.5x looks overly stretched and signals potential for a sharp drawdown in the second half of 2025.  

In late June, William Blair analysts also told clients that QS shares have gotten ahead of themselves as they reiterated their “Market Perform” rating on the firm. 

Wall Street’s Mean Target Signals Downside in QuantumScape

Investors should note that other Wall Street analysts also agree that QS stock is rather overvalued at current levels. 

According to Barchart, the consensus rating on QuantumScape shares sits at “Hold” only with the mean target of about $4.79 indicating potential downside of 65% from here.