Morgan Stanley has begun coverage on Quantumscape Corp (QS) with an Equal-Weight rating, marking the firm's initial assessment of the company. This rating reflects Morgan Stanley's analysis of Quantumscape's business model and its position within the auto components industry.
Headquartered in San Jose, California, Quantumscape develops next-generation solid-state lithium-metal batteries. The company's technology is designed to enhance energy density, facilitate faster charging, and improve safety. Quantumscape's battery cells are notable for being anode-free, manufactured without the host materials typically used in conventional anodes. The firm has demonstrated a solid-state separator capable of resisting dendrite formation, a significant advancement for automotive applications.
As of December 4, 2025, Quantumscape's market capitalization stands at $7.5 billion, with a trailing twelve-month earnings per share (EPS) of -0.81. Upcoming earnings are scheduled for July 21, 2026, with an EPS estimate of -0.20. Recent performance shows a mixed track record, including a surprise of 12.6% in Q3 2025, where EPS was -0.18 compared to an estimate of -0.21.
Analyst consensus as of December 1, 2025, indicates a predominantly bearish outlook, with 0 Strong Buy, 1 Buy, 6 Hold, 6 Sell, and 4 Strong Sell ratings. This update provides insight into the evolving perspective on Quantumscape as analysts respond to the company's developments and market conditions.