The solid-state battery maker still has a lot to prove.
QuantumScape announced the first production of B Sample cells and deployment of Raptor, with higher volume production expected in 2025 via Cobra and PowerCo partnership. Despite technological advancements, long-term operational risks and waning EV interest can make timing the most important factor for QuantumScape's success. QuantumScape's financials show $841mm in liquidity, but additional equity raises are likely needed to sustain operations until potential commercialization in 2028.
QuantumScape's batteries could transform the electric-vehicle (EV) landscape.
QuantumScape Corporation (NYSE:QS ) Q3 2024 Earnings Conference Call October 23, 2024 5:00 PM ET Company Participants John Saager - Vice President, Capital Markets and FP&A Siva Sivaram - Chief Executive Officer Kevin Hettrich - Chief Financial Officer Conference Call Participants Gabriel Gonzales - UBS Henry Roberts - Truist Securities Winnie Dong - Deutsche Bank Ben Kallo - Baird Mark Shooter - William Blair Operator Good day, and welcome to QuantumScape's Third Quarter 2024 Earnings Conference Call. John Saager, QuantumScape's Vice President of Capital Markets and FP&A, you may begin your conference.
While QuantumScape could be a game-changing company and investment, investors are still waiting for the company to turn the corner.
The company earned a massive investment from an existing partner.
QuantumScape's pivot to a capital-light licensing model with Volkswagen's PowerCo extends its cash runway to 2028, mitigating balance sheet stress. The company is progressing with its Raptor and Cobra manufacturing processes, aiming for full-scale production by 2025 despite current financial losses. QuantumScape's valuation remains aligned with peers, but risks include manufacturing execution challenges and dependency on Volkswagen's commitment.
QuantumScape is attempting to build a solid-state lithium-metal battery that can be mass-produced. The company is working with Volkswagen in its efforts to commercialize a product.
QuantumScape's stock is down about 95% from its all-time high. The company still hasn't commercialized any of its batteries yet.
The battery technology company isn't exactly a low-risk stock, but it could be transformative to the EV industry.
If you believe in the long-term potential of QS' solid-state batteries and are prepared for the associated risks, holding onto your shares could pay off.
QuantumScape is on pace with its Raptor production progress. The company has achieved many milestones in 2024.