The innovative battery technology company is making excellent progress.
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.