The S&P 500 Posts a Solid, with QuantumScape as a Major Standout
A Brief Overview of the Market’s Performance
On Monday, the S&P 500 posted a solid performance, with several key stocks contributing to its upward trend. However, one company in particular stood out from the rest: QuantumScape (NYSE: QS), a leading provider of solid-state EV battery technology.
QuantumScape: A Key Performer in 2025
As of the market close on Monday, QuantumScape had gained an impressive 9.5%, with its stock price increasing by more than 13% at certain points during the day. This significant surge is all the more remarkable considering that the company has been one of the top performers in the market so far this year.
The Momentum Factor
Some analysts believe that the recent increase in QuantumScape‘s stock price can be attributed to momentum-driven factors. With its current gains, the EV battery technology stock is up nearly 27% already in 2025, with increases recorded in every trading session since the start of the year.
Potential Catalyst for Growth
According to a recent report by the Washington Post, President-elect Donald Trump is considering a narrower tariff plan that would focus on raising tariffs only for specific goods and services. While it’s unclear which industries would be affected, it’s likely that automakers wouldn’t be targeted.
Automaker Stocks Follow Suit
In response to the potential news, shares of several key automakers increased in value on Monday. Volkswagen, with its close relationship with QuantumScape, saw a gain of over 3% as of mid-afternoon. General Motors and Lucid Group also experienced significant increases.
Impact on QuantumScape’s Business
While QuantumScape is still an essentially pre-revenue company, it is expected to rely heavily on business from various automakers once its commercialized versions of solid-state electric vehicle batteries become successful. As such, the company’s future will likely be closely tied to developments in the tariff issue over the coming months.
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The Top 10 Stocks to Consider
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Disclosure Policy
Matt Frankel has positions in General Motors and QuantumScape. The Motley Fool recommends General Motors and Volkswagen Ag, and recommends the following options: long January 2025 $25 calls on General Motors.
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