2 High-Risk High-Reward EV Stocks to Buy in 2025

QuantumScape - QuantumScape is developing solid-state lithium-metal batteries that could significantly enhance energy density, charging times, and safety, potentially revolutionizing the battery industry [2][6] - The company has made progress towards commercialization, with equipment for the second phase of sample production delivered and set for initial processing in 2025 [3][6] - A significant agreement with Volkswagen Group's PowerCo allows for the manufacturing of up to 40 GWh per year using QuantumScape's technology, with the option to double this capacity [4][5] - The nonexclusive nature of the deal opens opportunities for additional partnerships, which could further enhance QuantumScape's market position [5] Rivian Automotive - Rivian is not expected to replicate Tesla's success but aims to establish a valuable niche in the electric vehicle market, with its R1T and R1S models receiving high customer satisfaction ratings [7] - The company has future products in the pipeline, including the R2, R3, and R3X, all priced below $50,000, which will broaden its target audience [8] - Rivian anticipates becoming gross-profit positive in Q4, indicating a potential path toward profitability, although this is still years away [9] - The company has secured a deal with Volkswagen worth up to$5.8 billion to develop next-generation software-defined vehicles and received a conditional commitment for up to $6.6 billion in loans from the U.S. Department of Energy for its Georgia factory [10] Investment Outlook - Both QuantumScape and Rivian are characterized as high-risk, high-reward investments, with the potential for significant value if they meet their respective goals [11] - 2025 is seen as a pivotal year for both companies, with QuantumScape focusing on finalizing its technology and Rivian preparing to launch its vehicle pipeline in 2026 [12][13]