QuantumScape Stock Upgraded as HSBC Cites Progress Toward Commercialisation

QuantumScape stock (NASDAQ: QS) received a modest vote of confidence from HSBC, as the investment bank upgraded the solid-state battery developer to Hold from Reduce, though the move came alongside a reduced price target of $8.30 from $10.50.

The upgrade arrives amid a challenging period for the stock, which has declined 35.35% year-to-date as technology valuations contract and markets reassess the commercialisation timeline for pre-revenue growth companies.

HSBC analysts highlighted QuantumScape's achievement of its 2025 targets and described the company as being “on a solid road to mass-market commercialisation” following the inauguration of its Eagle Line production facility. The research note expressed encouragement over the company's “steady progress” toward bringing its ceramic separator technology to market, a critical milestone in the multi-year development of solid-state battery technology for electric vehicles.

The Eagle Line facility in San Jose, California, represents a significant inflection point for QuantumScape. The highly automated pilot facility employs the company's proprietary Cobra heat-treatment process, a manufacturing breakthrough designed to enable mass production of ceramic separators.

This launch marks the culmination of a strategic pivot that began in late 2024, when QuantumScape shifted focus from laboratory prototypes to B-sample production. Throughout 2025, the company successfully shipped its first QSE-5 B1 samples to automotive partners, a development that has de-risked the technology in the eyes of several analysts tracking the stock.

Valuation and Revenue Concerns Persist

Despite these operational advances, HSBC's upgrade stops short of a buy recommendation. The firm noted a lack of detailed information regarding QuantumScape's licensing contract structure and revenue streams, creating uncertainty around the financial model that will eventually drive profitability. This opacity on commercialisation economics has contributed to cautious market sentiment, with the stock trading approximately 14% lower over the past 30 days and sitting 20% below its 50-day moving average.

QuantumScape remains firmly in its pre-revenue phase, with meaningful income not anticipated until later in 2026. The company narrowed its annual net loss to $435.05 million while advancing Eagle Line pilot production, but this lack of ongoing cash flow leaves the stock particularly vulnerable to shifts in interest rates and broader market risk appetite. The technology sector's valuation contraction in early 2026 has amplified pressure on speculative growth names without established revenue bases.