QuantumScape Shares Fall as Q1 Loss Widens; Misses EPS Estimates

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QuantumScape Shares Fall as Q1 Loss Widens; Misses EPS Estimates
Credit: © Reuters.

SAN JOSE - QuantumScape Corporation (NYSE: QS), a leader in the development of solid-state lithium-metal batteries for electric vehicles, reported a wider loss per share in the first quarter than analysts had expected, leading to a 3% decline in its stock price. The company posted a first-quarter loss of -$0.24 per share, slightly below the consensus estimate of -$0.23.

The company's financials showed a GAAP net loss of $120.6 million, with an adjusted EBITDA loss of $76.2 million for the quarter. Despite the reported loss, QuantumScape maintained its full-year 2024 guidance for capital expenditures to be between $70M and $120M and for adjusted EBITDA loss to be between $250M and $300M.

In the first quarter, QuantumScape's capital expenditures amounted to $14.1 million, primarily supporting low-volume prototype production and preparations for higher volume production in 2025. The company ended the quarter with $1.01 billion in liquidity and expects its cash runway to extend into the second half of 2026.

QuantumScape's President, CEO, and Director, Dr. Siva Sivaram, emphasized the company's progress toward its key goals for 2024, including the shipment of Alpha-2 prototype battery cells and advancements in their Raptor fast separator production process. Dr. Sivaram stated, "We are as enthusiastic as ever about our technology and its potential impact, and we look forward to sharing more details over the months to come."

The company highlighted the shipment of six-layer Alpha-2 prototype battery cells to automotive customers, marking the first of its four key goals for 2024. The Alpha-2 prototype is touted as more energy-dense than the earlier 24-layer A0 prototype, combining higher-loading cathodes with FlexFrame cell format and improved packaging efficiency.

QuantumScape's focus on innovation and customer collaboration is evident in its strategic outlook, as it remains committed to bringing its first commercial solid-state lithium-metal battery cell to market for electric vehicle applications. The company's differentiated technology and methodical execution of milestones suggest a clear path forward in the competitive EV battery market.

As investors digested the earnings report, the stock's 3% drop indicates a market reaction to the missed EPS estimates and the challenges ahead in the company's journey from prototype to product. However, QuantumScape's strategic focus and maintained guidance reflect confidence in its long-term vision and operational strategy.

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