Shares of QuantumScape Corp. (QS), a leading electric vehicle (EV) battery manufacturer, skyrocketed 14.33% in intraday trading on Monday, outperforming the broader market. The stock's surge was fueled by positive EV sales data from research firm Cox Automotive, which estimated that U.S. EV sales surged 12% in the fourth quarter of 2024 compared to the same period a year earlier.
According to Cox Automotive, the increase in EV demand was driven by consumers rushing to purchase EVs before potential changes to federal tax credits under the incoming Republican administration. This surge in demand benefited QuantumScape, a key player in the EV battery market, as well as other EV-related companies like General Motors (GM), which saw its stock climb 4% on Monday.
Adding to the positive sentiment, GM reported that its EV sales had climbed around 100% in the fourth quarter of 2024 compared to the second quarter, with its share of the U.S. EV market jumping to 12% from 7.1% during the same period. This strong performance from a major automaker further boosted investor confidence in the EV industry and its associated businesses, driving QuantumScape's stock higher.
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