Evercore ISI Group has downgraded Quantumscape Corp (QS) to In-Line from Outperform, signaling a shift in sentiment regarding the company's future performance. This action, effective November 23, 2025, comes as Quantumscape's stock trades at $11.83.
The downgrade underscores increased caution about Quantumscape's outlook, potentially due to competitive pressures, challenging market conditions, or execution risks that could impact the company's trajectory. Quantumscape, headquartered in San Jose, California, specializes in developing next-generation solid-state lithium-metal batteries, aiming to enhance energy density, charging speed, and safety in automotive applications.
As of November 20, 2025, Quantumscape holds a market capitalization of $7.5 billion, with a trailing twelve months (TTM) earnings per share (EPS) of -0.81. The company is set to report its next earnings on July 21, 2026, with an EPS estimate of -0.20 and no expected revenue. Recent earnings performance has shown mixed results, with a Q3 2025 EPS of -0.18 exceeding estimates by 12.6%.
Analyst ratings, including the latest downgrade, offer valuable insights based on research and financial models but should not be the sole basis for investment decisions. Investors are encouraged to consider a range of factors, including company fundamentals and industry trends. Notably, Quantumscape's analyst consensus as of November 1, 2025, reflects a cautious stance with 0 Strong Buy, 1 Buy, 7 Hold, 5 Sell, and 4 Strong Sell ratings, culminating in an overall consensus to Sell.
This update provides insight into the evolving perceptions of Quantumscape's market position and future prospects, especially as the company navigates a competitive landscape in the auto components industry.