QuantumScape Stock Plunges Ahead of Earnings. Should You Buy the Dip in QS Stock, or Steer Clear?

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VolkTue, Jul 22, 2025, 3:00 PM 3 min readEV charging spot by Patpitchaya via iStockQuantumScape (QS) stock is coming off of a remarkable rally, reaching a new 52-week high of $15.03 on July 18 to cap off a nine-day win streak leading up to its Q2 earnings release on July 23. The company's recent success is largely attributed to the groundbreaking integration of its Cobra separator process into baseline cell production, which has dramatically improved manufacturing efficiency by a factor of 25 compared to previous methods.The technological advancement has not only streamlined production but also reduced equipment requirements and operational footprint, contributing to the battery stock's staggering 268% rise from its April lows.Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here?This Penny Stock Wants to Become the MicroStrategy of DogecoinRobinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOODOur exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!However, the recently high-flying momentum stock is currently on pace to continue Monday’s sharp reversal into a second session. In premarket trading, QS has collapsed by 9.5% on heavy volume, on pace to add to yesterday’s 14.5% decline.QuantumScape stock is now below its upper Bollinger Band again, after briefly breaking out above this technical level. Additionally, the 14-day Relative Strength Index (RSI) stands at 63.46, retreating from a surge into deeply overbought territory earlier this month.www.barchart.comWhile QuantumScape maintains a strong financial position, with $860 million in liquidity extending into late 2028, the company remains pre-revenue. For its second quarter, due out after Wednesday night’s close, analysts expect QS to show improvement with a projected loss of $0.20 per share, compared to a loss of $0.25 per share last year.A strategic partnership with Volkswagen's (VWAGY) PowerCo battery arm continues to be a crucial element in QuantumScape's commercialization strategy, positioning QS to potentially license its technology for mass production of electric vehicle (EV) battery cells. QuantumScape is progressing toward customer sample shipments and field testing of QSE-5 modules in 2026, marking important milestones in its development timeline.More broadly, global EV sales are projected to exceed 20 million units in 2025, with the battery market expected to nearly triple production to 377,000 units in the same year. However, supply chain vulnerabilities persist - particularly as it relates to critical minerals and battery materials, where China maintains dominant control over 70% of global lithium supply and processing capacity.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,402.50 +6.25 (+0.10%)Dow Futures45,098.00 -116.00 (-0.26%)Nasdaq Futures23,397.50 +86.75 (+0.37%)Russell 2000 Futures2,289.90 -4.90 (-0.21%)VIX15.37 -1.13 (-6.85%)Gold3,397.40 -0.20 (-0.01%)PortfolioSign in to access your portfolioSign inTop gainersABVX ABIVAX Société Anonyme 68.60 +58.60 (+586.00%)LBRT Liberty Energy Inc. 13.25 +2.00 (+17.78%)VICR Vicor Corporation 52.68 +7.48 (+16.55%)LW Lamb Weston Holdings, Inc. 57.19 +8.02 (+16.31%)HIMS Hims & Hers Health, Inc. 58.02 +8.01 (+16.02%)Top losersENPH Enphase Energy, Inc. 36.48 -6.02 (-14.16%)FI Fiserv, Inc. 143.00 -22.98 (-13.85%)TXN Texas Instruments Incorporated 186.25 -28.67 (-13.34%)OTIS Otis Worldwide Corporation 88.49 -12.50 (-12.38%)MARA MARA Holdings, Inc. 17.57 -2.31 (-11.62%)Most activeLCID Lucid Group, Inc. 3.0800 -0.0500 (-1.60%)NVDA NVIDIA Corporation 170.78 +3.75 (+2.25%)MARA MARA Holdings, Inc. 17.57 -2.31 (-11.62%)NIO NIO Inc. 4.9200 -0.0900 (-1.80%)WBD Warner Bros. 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