QuantumScape (NYSE: QS) stock kicked off 2023 in high gear after its solid-state battery cells passed a key endurance test at a subsidiary of automaker Volkswagen. The automaker has been a key partner and investor in QuantumScape for more than a decade now, has tested several of the company’s battery cells at its laboratories, and is expected to be the first company to commercialize vehicles using QuantumScape’s solid-state battery technology.
So when a report appeared suggesting that Volkswagen is looking at more options and has started talks with other solid-state battery makers, given the persistent delay in QuantumScape’s commercialization, the stock was bound to be hit. That’s what happened on Tuesday, when QuantumScape stock fell. By 2:30 p.m. ET, it had dropped more than 5%.
Volkswagen is reportedly in talks with France’s Blue Solutions for its solid-state batteries, according to a report from Reuters that came out on Tuesday morning. The companies could reportedly finalize an agreement in the coming months.