[US Stock Trends] Comparing two EV-related stocks: QuantumScape [QS] and ChargePoint [CHPT] | Motley Fool US Stock Information | Moneyクリ MoneyX Securities' investment information and media helpful for money.

Motley Fool U.S. Headquarters - May 25, 2025, from a posted article

Among the two EV-related stocks that are struggling in the stock market, which one is worth re-examining?

QuantumScape [QS] and ChargePoint Holdings [CHPT] are two stocks related to the growing electric vehicle (EV) market, but their business activities are different.

QuantumScape is developing solid lithium metal batteries. These offer superior thermal resistance, charging speed, and maximum capacity compared to traditional lithium-ion batteries. Meanwhile, ChargePoint is conducting installation work for the largest residential and commercial EV charging stations (charging equipment) in North America and Europe.

Both Quantscape and ChargePoint closed at all-time highs during the peak of the meme stock boom in December 2020. However, both are now more than 95% below their highs. Let’s take a look at why these two EV-related stocks have lost momentum and the current state of the business.

QuantumScape faces many challenges

Quantumscape has been developing solid-state batteries for the past 15 years, but they are yet to be commercialized. The company’s first solid-state battery, the QSE-5, has an energy density of more than 800 watt-hours per liter (Wh/L) and is expected to be able to charge quickly, taking less than 15 minutes to increase the charge from 10% to 80%. The average energy density of conventional lithium-ion EV batteries is 300~700Wh/L, and it takes an average of 20 minutes ~ 1 hour even with fast charging.

QuantumScape has been developing and testing these batteries in collaboration with the German automotive giant Volkswagen for over a decade, but only a small number of test samples have been shipped so far. The mass production and commercialization of the first solid-state batteries are expected to occur no earlier than 2026.

In 2025, QuantumScape plans to transition from the current “Raptor” separator manufacturing process to a new “Cobra” separator manufacturing process, and is also expected to ship a small quantity of test samples. This transition is anticipated to significantly improve yield, production efficiency, and reliability, paving the way for the commercialization of the company’s batteries.

However, QuantumScape faces competition from major automotive manufacturers such as Toyota Motor Corporation (7203) and NIO, which are independently developing solid-state batteries. Additionally, other startups like Blue Solutions and Solid Power Inc. (SLDP) are also racing to develop towards the same goal.

While it’s difficult to assess Quantscape’s stock price in a non-sales situation, analysts’ consensus estimates are that the company’s first commercialization of batteries will boost revenue from $4 million in 2026 to $93 million in 2027. At the time of writing, the company has a market capitalization of $1.63 billion, which is 18 times the expected sales for 2027, so the stock is not cheap, but if the business is successfully expanded, subsequent sales could skyrocket.

Are charge points a bargain?

As of the end of the fiscal year 2025, which concluded in January 2025, ChargePoint manages 342,000 charging ports in North America and Europe. Among these, over 33,000 are Level 3 fast chargers, while the remainder are Level 2 chargers with lower charging speeds.

ChargePoint primarily sells connected charging devices to companies seeking unique pricing structures. ChargePoint provides these customers with network access, billing, and customer support services. This competitive edge distinguishes it from Tesla’s [TSLA] Superchargers. Tesla’s Superchargers operate independently and are managed exclusively by Tesla as a function connected to its own digital ecosystem.

Therefore, Tesla operates over 67,000 superchargers worldwide, but it is not a direct competitor to ChargePoint. Rather, the closest competitor to ChargePoint is EVgo, which operates 4,240 charging stations as a domestic network.

The sales of charging points increased by 65% in the fiscal year 2022 and 93% in the fiscal year 2023, in line with the expansion of the EV market, but growth was limited to 8% in the fiscal year 2024 and decreased by 18% in the fiscal year 2025.

The slowdown in sales is due to rising interest rates and other factors. The rise in interest rates has cooled the EV market, resulting in commercial and residential customers hesitating to install new charging stations. However, in the fiscal year 2025, a dynamic pricing model that adjusts prices according to demand will be newly introduced alongside workforce reductions, significantly shrinking the final deficit. The new pricing model will enable station owners to increase their responsiveness by adjusting prices.

According to consensus forecasts, from fiscal year 2025 to fiscal year 2028, driven by a decrease in interest rates and stabilization of the EV market, revenues from charging points are expected to grow at an annual rate of 21%, reaching $738 million. Furthermore, it is predicted that adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) will turn positive in fiscal year 2027 and will expand rapidly to $80 million by fiscal year 2028.

At the time of writing this article, the market capitalization of ChargePoint is $495 million, which is only 1.1 times the projected sales for this fiscal year. If the EV market revitalizes again, there is a possibility that the valuation will increase.

QuantumScape’s stock price may soar when the sale of its first solid-state battery begins, but until then, there is a possibility of decline. Therefore, at this point, I believe it is smarter to choose ChargePoint as an undervalued investment in the EV market rather than placing excessive trust in QuantumScape’s ambitious long-term plans.

Disclaimer and Disclosure The article is intended for general informational purposes only and is not investment advice for investors. The original author of the article, Leo Sun, does not own shares in any of the mentioned stocks. The Motley Fool US headquarters holds and recommends Tesla shares. The Motley Fool US headquarters recommends Volkswagen. The Motley Fool US headquarters has established a disclosure policy.