If there’s one company (not an online retailer) that thrived despite the chaos in 2020, it’s electric vehicle startups (whether or not they had a working product it didn’t matter) QuantumScape, one of Bill Gates-sponsored startup developing next-generation batteries for electric vehicles is arguably at the center of this electric hype

In November, QuantumScape went public through a reverse merger with the dedicated acquisition unit of Kensington Capital at a value of $ 3 billion. Since then, the share price has soared through the roof, rising from $ 10 at the market debut to over $ 95 at close of trading on Monday

“That assessment is absurd and unjustified,” said Ian Bezek, a former hedge fund analyst who now writes for Investor Place

What has led investors to amass the stock of the fledgling company is its bold aim to commercialize solid-state batteries, an emerging lithium-ion battery alternative that carries the promise of significantly lowering the cost of electric vehicles

Solid-state batteries are less flammable, charge faster and have a higher energy density (thus greater range) than lithium-ion batteries. The only disadvantage is that it is expensive to manufacture with existing technology

QuantumScape touts lithium-metal battery technology that could change all of that, the company said its prototype single-layer pouch cell demonstrated the ability to charge batteries up to 80 percent capacity in 15 minutes and enable a car to last hundreds of thousands of kilometers even in extreme temperatures (down to -22 degrees Fahrenheit)

During a video presentation earlier this month, QuantumScape received important endorsement from Nobel Prize winner Stanley Whittingham, who said the startup’s lithium-metal technology could increase battery energy density by 50 percent, if not 100 percent

And Bill Gates, who is by no means a chemist but who, according to Jagdeep Singh, CEO of QuantumScape, has apparently become an expert since investing in the company, is also fully behind the idea

“I honestly didn’t think he knew anything about chemistry and we are all about chemistry but when he thinks something is important he can dive really deep and become an expert in the field. He is very deep into this field advanced ”, Singh recently told Fortune

Still, nothing is set in stone yet, at least financially, according to its own product roadmap, QuantumScape will test the batteries by 2023.If successful, a factory will be built in 2024 and it is hoped that constant revenue will flow in two years after that to investors however, do not expect profitability until at least 2027

“Long story short, you will have to be patient for most of the next decade before QuantumScape makes any serious money,” wrote Bezek of Investor Place. “Make no mistake, QuantumScape is a winning concept, but the current valuation is absolute crazy There’s just no way to get the math to work ”

QuantumScape is supported by Bill Gates’ Breakthrough Energy Ventures, Volkswagen, Qatar’s sovereign wealth fund, Stanford University, German auto supplier Continental, and a list of Silicon Valley VC companies

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QuantumScape Stock

World News – CA – Bill Gates-Backed Electric Vehicle Startup Has Biggest Stock Bubble Of 2020

Source: https://observer.com/2020/12/bill-gates-quantumscape-battery-stock-bubble/