Why Did Quantumscape Stock Surge on Monday?
The S&P 500 Posts a Solid Performance, with QuantumScape as a Major Standout
On Monday, the S&P 500 posted a solid performance, with QuantumScape (NYSE: QS) being one of the notable gainers. As of the market close, the company’s stock had risen by 9.5%, and it traded more than 13% higher at certain points during the day.
QuantumScape is One of 2025’s Best Performers So Far
Some of the movement in QuantumScape’s price appears to be momentum-driven. Including Monday’s gain, the company’s stock has risen by nearly 27% already in 2025, with gains in every trading session. This impressive performance has contributed significantly to its status as one of the best-performing stocks so far this year.
A Report on President-elect Donald Trump’s Tariff Plans May Be a Catalyst for Growth
A report released on Monday about President-elect Donald Trump’s tariff plans may be serving as the latest catalyst for QuantumScape’s growth. According to a Washington Post report, Trump is considering a narrower tariff plan that focuses on raising tariffs for only a specific set of goods and services. While it’s not clear what industries would be affected, it’s likely that automakers wouldn’t be a target.
Share Prices of Key Automakers Increase
Shares of several key automakers increased on Monday as well. Shares of Volkswagen, which has a close relationship with QuantumScape, were up by more than 3% as of mid-afternoon. General Motors and Lucid Group were also significantly higher.
Will the News Impact QuantumScape’s Business?
To be clear, Trump disputed the report shortly after it was published, claiming that the story ‘incorrectly states that my tariff policy will be pared back.’ However, the impact of this news on QuantumScape’s business is still uncertain. As a pre-revenue company, QuantumScape is at least a couple of years away from generating significant sales. Nevertheless, if its commercialized versions of solid-state electric vehicle batteries are successful, it will likely rely on business from many different automakers.
The Importance of Following the Latest Developments
It will be essential to follow the latest developments on the tariff issue over the coming months. As QuantumScape’s success may depend heavily on its ability to secure partnerships with various automakers, any changes in the tariff plan could have a significant impact on its business.
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Matt Frankel has positions in General Motors and QuantumScape. The Motley Fool recommends General Motors and Volkswagen Ag and recommends the following options: long January 2025 $25 calls on General Motors.
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