Here's Why QuantumScape Soared on Monday

The S&P 500 had a strong performance on Monday, and QuantumScape (QS 9.67%) emerged as a notable performer. By the end of the trading day, QuantumScape, a company developing solid-state electric vehicle (EV) battery technology, saw its stock rise by 9.5%, with an impressive peak gain of over 13% during the session.

QuantumScape's Rising Momentum in 2025

The surge in QuantumScape's stock price seems to be largely driven by market momentum. With the latest increase, QuantumScape's shares have climbed nearly 27% since the start of 2025, marking gains in each trading day thus far.

A report published on Monday concerning President-elect Donald Trump's potential tariff strategies may be contributing to the stock's positive momentum. The Washington Post indicated that Trump is considering a more targeted tariff approach, potentially focusing on increasing tariffs for only specific types of goods and services. While the exact industries that would be impacted remain uncertain, the automotive sector is likely to be spared from higher tariffs.

Shares of key automotive companies also saw positive movement on Monday. For example, Volkswagen, which has a strong partnership with QuantumScape, increased by over 3% during the afternoon trading period. Other automakers like General Motors and Lucid Group also experienced notable stock price increases.

Potential Impacts on QuantumScape's Business

However, it is essential to note that Trump disputed the tariff report shortly after it surfaced, asserting that it misrepresented his tariff policy as being diminished.

At this stage, QuantumScape is still in the pre-revenue phase and is likely a few years away from achieving significant sales. If the company successfully commercializes its solid-state EV batteries, it will likely need to establish partnerships with various automakers for distribution. Therefore, monitoring the developments regarding tariffs in the coming months will be crucial for QuantumScape's business prospects.

Disclaimer: The author has positions in General Motors and QuantumScape. The Motley Fool recommends General Motors and Volkswagen AG.

QuantumScape, Stocks, Tariffs