Could Investing $10,000 in QuantumScape Make You a Millionaire?
What’s the secret to finding mega-winner stocks like Amazon and Nvidia before they soar? It’s not a secret. You just need to spot a company that’s uniquely positioned to capitalize on a real opportunity before most other investors do the same.
Problem? It’s much easier said than done. For every Amazon and Nvidia out there, there are also a bunch of high-profile implosions like AOL (and then Yahoo!), BlackBerry, and Groupon. Not every well-touted ticker lives up to the hype. The company in question must truly offer a game-changing product or service, but it’s not always clear if and when they do. When they do, however, then wow!
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With that as the backdrop, risk-tolerant investors on the hunt for a prospective mega-winner might want to put QuantumScape (NYSE: QS) on their radar if not in their portfolio. This company may be on the verge of getting electric vehicles over one of their tallest hurdles.
Never heard of QuantumScape? Don’t sweat it. The company’s $2.5 billion market cap doesn’t turn many heads. It’s also a pre-revenue company, deterring even more investors.
Nevertheless, there’s enough potential here to merit a look.
In simplest terms, QuantumScape designs and manufactures superior lithium batteries. It’s not exactly a new science. Lithium-based batteries have been found in most common consumer electronics for years now. Tesla‘s very first car — the Roadster — also used lithium-ion batteries when it first began production back in 2008. With automobile manufacturers recognizing this material’s energy-storage capacity was necessary to make EVs viable, nearly every electric vehicle made since then has followed suit. And for most EV owners most of the time, these batteries are adequate.
Anybody keeping their finger on the pulse of the electric vehicle movement, however, likely knows sales growth is slowing. Although the market itself is still expanding, J.D. Power’s Autovista24 reports sales growth of battery-powered cars and plug-in hybrids slowed to a pace of 22% during the first half of this year, down from the year-earlier growth rate of 35%.
The still-young industry was hoping for acceleration at this stage of the game.
Causes for this headwind include high upfront costs, a lack of fast-charging infrastructure, and poor battery life. Perhaps more than anything, though, would-be EV owners worry about a limited driving range on a single charge without a convenient recharging option at their destination.
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