QuantumScape Stock Is Down 70% This Year, Why This Analysts Sees More Downside Ahead

A downgrade from a Goldman Sachs analyst put shares of QuantumScape Corp (NYSE: QS) under significant pressure on Wednesday.

The company, which develops next-generation solid-state lithium-metal batteries, is headed for several years of negative earnings per share and free cash flows, according to the analyst.

The QuantumScape Analyst: Mark Delaney downgraded the rating on QuantumScape from Neutral to Sell, while reducing the price target from $8 to $5.

The QuantumScape Thesis: The company’s commercial ramp is now expected to occur in the back half of 2026, versus the earlier target of 2025, Delaney said in the downgrade note.

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“Even if/when the technology is commercially ready, we believe per our industry discussions that ramping into volume production as a new entrant could also pressure FCF,” the analyst wrote.

“With investors increasingly focused on EPS power and FCF in light of the tough macro conditions, we believe that QuantumScape shares will underperform our broader coverage,” he added.

QS Price Action: Shares of QuantumScape had declined by 4.37% to $6.78 at the time of publication on Wednesday.

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