QuantumScape Stock Is Charging Ahead: Retail Is Already Speculating A Major Order After AI Pivot

• QS stock rose 7% in after-hours trading on Tuesday.
• Retail traders believe new orders and wins are on the horizon, while a short squeeze appears to be driving up the shares.
• Stocktwits sentiment for QS jumped to ‘extremely bullish’ from ‘bullish.’

QuantumScape Corp.’s shares surged 7% in after-hours trading on Tuesday, following three straight sessions in the green, with the rally coming on the heels of the company’s recent updates on battery production and plans to tap new markets such as AI data centers.

QS was among the top 10 trending tickers on Stocktwits late Tuesday, with the retail sentiment jumping to ‘extremely bullish’ from ‘bullish.’ The stock has gained for three straight sessions, or 15% until Tuesday’s close.

QuantumScape develops solid-state lithium-metal batteries for electric vehicles, claiming they would deliver a longer driving range, faster charging, and improved safety compared to conventional lithium-ion batteries. 

The stock’s rally highlights growing investor appetite for companies tied to — or seeking exposure to — the booming data center market, particularly firms whose shares have yet to fully participate in the broader AI-driven surge.

Production, New Market Updates Drive Momentum? 

During its earnings report last month, the company said it inaugurated its “Eagle Line” pilot production facility in California to scale manufacturing of its QSE-5, QuantumScape’s solid-state lithium-metal battery cell designed for automotive applications.

Separately, “in addition to our automotive business, we are ramping up our engagements in new markets,” CEO Siva Sivaram and CFO Kevin Hettrich said in their shareholder letter.

“We believe our high-performance solid-state design has compelling attributes to address the evolving energy-storage needs of AI data centers, where conventional lithium-ion technology faces safety and performance limitations,” they said, adding that QuantumScape was also seeing interest from military, aerospace, and government sectors.

Retail View On QS

Retail investors turned more upbeat about QS on Tuesday. “QS data center power storage, robotics, electric vehicles. To the moon!” said a trader.

Another wrote: “Can they make it anymore obvious with those huge buy orders coming in the past two days? Clearly QS landed a military award or agreement.”

While there was no official news release, traders speculated a potential short squeeze, citing high short interest and institutional accumulation as catalysts for a larger breakout.

“QuantumScape jumps 14.6% today as post-earnings momentum meets heavy short interest and bullish options flow! Reported short interest has remained high … increasing the odds that a fast upward move triggers short covering and accelerates gains,” another trader wrote.

In recent months, institutional investors BlackRock, Morgan Stanley and Vanguard, among others, disclosed that they had increased their stake in the battery maker. Short interest in QS stock has climbed sharply this year, reaching a record 15.3%, according to Koyfin. 

As of their last close, QS shares are down 19% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.