Better EV Stock: QuantumScape vs. ChargePoint

Yahoo

25-05-2025

QuantumScape still hasn't sold any of its solid-state batteries yet.
ChargePoint will install more charging stations as the EV market warms up again.
Investors should stick with the company that is generating actual revenues.
10 stocks we like better than QuantumScape ›
QuantumScape (NYSE: QS) and ChargePoint (NYSE: CHPT) represent two different ways to invest in the growing electric vehicle (EV) market.
QuantumScape develops solid-state lithium metal batteries which provide better thermal resistance, faster charging times, and higher maximum capacities than traditional lithium ion batteries. ChargePoint is the largest builder of residential and commercial EV charging stations in North America and Europe.
QuantumScape and ChargePoint both closed at their record highs during the apex of the meme stock mania in December 2020. But today, they're both trading more than 95% below their all-time highs. Let's see why these two EV stocks ran out of juice -- and if they're worth buying now.
QuantumScape has been developing its solid-state batteries for the past 15 years, but it still hasn't commercialized any of its products. Its first battery, the QSE-5, should have an energy density of over 800 Wh/L (watt hours per liter) and can be rapidly charged from 10% to 80% in less than 15 minutes. Most traditional lithium ion EV batteries have an average density of 300-700 Wh/L with an average fast charging time of 20 minutes to an hour.
QuantumScape has been working with Volkswagen for more than a decade to develop and test those batteries, but it's only shipped some low volume test samples so far. It doesn't expect to start mass-producing or commercializing its first batteries until 2026.
For 2025, ChargePoint expects to ship more low volume test samples as it transitions from its current Raptor separator process to the newer Cobra separator process. It expects that sweeping upgrade -- which should boost its yields, equipment productivity, and cell reliability -- to pave the way toward the commercialization of its batteries.
However, QuantumScape still faces a lot of competition from major automakers, including Toyota and Nio, which are developing their own solid-state batteries. Other start-ups like Blue Solutions and Solid Power are also rushing toward the same goal.
Without any revenue, QuantumScape is a tough stock to value. However, analysts expect its revenue to rise to $4 million in 2026 and $93 million in 2027 as it commercializes its first batteries. With an enterprise value of $1.63 billion, it might not seem cheap at 18 times its 2027 sales -- but its revenue could skyrocket over the following years if it successfully scales up its business.
At the end of fiscal 2025 (which ended this January), ChargePoint was managing 342,000 charging ports across North America and Europe. More than 33,000 of those ports were Level 3 fast chargers, while the rest were slower Level 2 chargers.
ChargePoint mainly sells its connected charging stations to businesses that want to set their own prices. It provides those customers with network access, billing, and customer support services. Those advantages set it apart from Tesla's Superchargers, which operate as stand-alone stalls and extensions of the automaker's own digital ecosystem.
Therefore, Tesla, which operates more than 67,000 Superchargers worldwide, shouldn't be considered a direct competitor to ChargePoint. Instead, ChargePoint's closest competitor is EVgo, which operates a smaller domestic network of 4,240 charging stalls.
ChargePoint's revenue surged 65% in fiscal 2022 and 93% in fiscal 2023 as the EV market expanded, but it only grew 8% in fiscal 2024 and dropped 18% in fiscal 2025.
That slowdown was caused by rising interest rates, which chilled the EV market and discouraged its commercial and residential customers from installing new charging stalls. But in fiscal 2025, it significantly narrowed its net loss as it trimmed its workforce and rolled out a new dynamic pricing model that grants its station owners even more control over their pricing variables.
From fiscal 2025 to fiscal 2028, analysts expect ChargePoint's revenue to grow at a compound annual growth rate of 21% to $738 million as interest rates decline and the EV market stabilizes. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in fiscal 2027 and surge to $80 million in fiscal 2028.
With an enterprise value of $495 million, ChargePoint trades at just 1.1 times this year's sales. It could command a much higher valuation once the EV market warms up again.
QuantumScape's stock might soar once it starts selling its first batteries, but its stock could easily sink lower until that happens. So for now, I'd rather buy ChargePoint as an undervalued play on the EV market instead of putting too much faith in QuantumScape's ambitious long-term plans.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.
Better EV Stock: QuantumScape vs. ChargePoint was originally published by The Motley Fool