Solid-state battery stocks slide as QuantumScape sinks 14% on sell-the-news reaction

David Moadel Thu, July 23, 2026 at 8:37 AM PDT | 4 min read

• QS: -4.50%
• NVDA: -0.92%
• SLDP: -3.26%
• SES: -6.35%
• HMC: +0.61%

Quick Read

• QS sank 14% in a sell-the-news reaction despite beating Q2 loss estimates and announcing a Honda solid-state battery partnership, pulling SLDP down 8%.
• Bears cite no near-term revenue and manufacturing execution risk, while bulls see QuantumScape's technology unlocking EVs, AI data centers, and defense markets.
• Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and QuantumScape didn't make the cut. Grab the names FREE today.

QuantumScape (NYSE: QS) shares fell 14% to $5.03 in Thursday morning trading, extending a difficult period for the solid-state battery developer. The decline follows the company's Q2 2026 earnings release after the July 22 close.

Courtesy of QuantumScape

The selling has spread across the small solid-state battery cohort. Solid Power (NASDAQ: SLDP) stock is down 8% to $2.15, and SES AI (NYSE: SES) shares are down 10% to $0.53.

Broader market conditions are not helping. For QuantumScape and its peers SLDP and SES, the S&P 500 is down 1.5% and the NASDAQ 100 is down 2.4% on Thursday — a risk-off backdrop that tends to punish high-beta, speculative names the hardest.

Post-Earnings Reaction Drives QuantumScape Lower

QuantumScape posted a Q2 2026 net loss of approximately $98 million, or $0.16 per share, narrower than the $0.1781 loss analysts had expected. The company reaffirmed its full-year 2026 adjusted EBITDA loss guidance of $250 million to $275 million while trimming capital-expenditure plans to $27 million to $37 million, down from a prior range of $40 million to $60 million.

Beyond the numbers, QuantumScape broadened its focus beyond electric vehicles. Management highlighted:

• A multi-year partnership with Honda Motor (NYSE: HMC) for solid-state lithium-metal battery technology
• Updated milestones with Volkswagen's (OTC: VWAGY) PowerCo unit
• Initial QSE-5 cell shipments to a major American defense prime
• Engagement with AI data center design partners

QuantumScape's operating expenses also improved, falling to $106 million from $124 million a year ago, with research and development at $83 million. Customer billings reached $10.8 million in the quarter, per the 8-K filing.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and QuantumScape didn't make the cut. Grab the names FREE today.

The reaction appears to be a classic sell-the-news response. QuantumScape stock was down 44% year to date (YTD) heading into Thursday, and even a headline EPS beat paired with a marquee Honda deal was not enough to lift a name where investors want to see actual revenue.

Solid Power and SES AI Slide in Sympathy

Solid Power has no company-specific catalyst today. The Colorado developer, which counts SK On, Samsung SDI, and BMW as partners, last reported Q1 2026 results in May and is targeting year-end 2026 commissioning of its continuous sulfide electrolyte pilot line. Solid Power shares are down 48% YTD.

SES AI is trading like a pure sympathy name. The sub-$1 speculative stock has fallen 70% YTD, and with a market cap of around $200 million, SES stock tends to move sharply on any shift in sentiment across the solid-state cohort.

Balancing the Bull and Bear Cases on QuantumScape

The bear case on QuantumScape stock is straightforward: no near-term revenue, ongoing cash burn, and real execution risk on scaling.