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16-05-2025
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QuantumScape Corp (QS) Q1 2025 Earnings Call Highlights: Navigating Losses and Strategic ...
Capital Expenditures (CapEx): $5.8 million in Q1 2025, with full-year guidance between $45 million and $75 million. GAAP Operating Expenses: $123.6 million in Q1 2025. GAAP Net Loss: $114.4 million in Q1 2025. Adjusted EBITDA Loss: $64.6 million in Q1 2025, in line with expectations. Liquidity: $860.3 million at the end of Q1 2025. Cash Runway: Extends into the second half of 2028. Warning! GuruFocus has detected 3 Warning Signs with QS. Release Date: April 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. QuantumScape Corp (NYSE:QS) is on track with its product launch, with QSE-5 samples being shipped for module and systems level integration and testing. The Cobra separator process is ahead of schedule, with all required equipment installed and qualification progressing well. The company is expanding its commercial engagements, notably with Powerco, the battery manufacturing arm of Volkswagen Group. QuantumScape Corp (NYSE:QS) has announced a collaboration with Murata Manufacturing to accelerate the industrialization of its solid-state battery technology. The company maintains a strong liquidity position with $860.3 million, extending its cash runway into the second half of 2028. QuantumScape Corp (NYSE:QS) reported a GAAP net loss of $114.4 million in Q1 2025. The company expects capital expenditures to increase significantly throughout 2025, impacting cash flow. Adjusted EBITDA loss was $64.6 million in Q1, with full-year guidance for a loss between $250 million and $280 million. The company faces uncertainties and risks related to future technology progress and financial performance. Tariffs and geopolitical factors present potential challenges, although current impacts are expected to be marginal. Q: Can you update our investors on our automotive customer engagements during the quarter and explain how that affects our existing customer? A: The product launch is progressing well, with teams working closely and shipping necessary volumes for module and systems level testing. The response to our licensing business model has been positive, with active discussions and collaborations with prospective customers, including bespoke solutions tailored to their roadmaps. Q: Could you elaborate on the role of Murata Manufacturing in the licensing model and how this fits into QuantumScape's strategic blueprint? A: Murata is a key partner in scaling our solid-state battery technology efficiently. They bring expertise in high precision ceramics, crucial for high-volume production. This partnership aligns with our strategy to leverage global manufacturing strengths while maintaining innovation and technological advancement. Q: Can you discuss the tariff implications on QuantumScape's financial outlook and how the supply chain exposure compares to conventional lithium-ion? A: Current tariffs have a marginal impact on costs, and we are mitigating this through alternative sources and cost reduction efforts. Our anode-free design eliminates graphite, reducing supply chain risks. As a global technology licensing company, we focus on innovation and ecosystem development to meet global battery demand. Q: How does the competitive landscape, particularly advancements by LFP companies, affect QuantumScape's position? A: While we monitor developments from companies like BYD and CATL, our no-compromise solution offers superior safety, cycle life, energy density, and cost. Our lithium metal anode-free design remains a strong differentiator, and we continue to see enthusiasm from large OEM customers. Q: What are QuantumScape's thoughts on potential collaborations with Murata and the impact on high-volume production? A: Collaborating with Murata accelerates production efficiency and scale. Our technology company focus ensures IP protection and rapid market entry. The partnership enhances our ecosystem, combining skills for high-volume manufacturing and leveraging network effects for broader adoption. Q: Are there any updates on the work with Powerco and the initial phase of the agreement with Murata? A: Collaboration with Powerco is progressing well, with joint efforts to enhance automation and integrate the Cobra process. The Murata partnership is part of a broader strategy to strengthen the supply chain, with unique agreements tailored to specific needs, supporting efficient delivery of our battery platform. Q: How does QuantumScape view the potential for applications outside of EVs? A: While our primary focus is on the automotive sector, our high-performance battery technology has potential applications in data centers, aviation, and consumer electronics. We remain open to exploring these opportunities while prioritizing automotive advancements. Q: Can you provide more context on the financial implications of the licensing model? A: The licensing model includes royalties from product sales involving our technology, along with potential pre-pays and development reimbursements. We plan to provide a comprehensive financial picture as the model evolves and the ecosystem develops. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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16-05-2025
- Business
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Q1 2025 Quantumscape Corp Earnings Call
John Seger; Vice President, Capital Markets; Quantumscape Corp Siva Sivaram; President & Chief Executive Officer; Quantumscape Corp Kevin Hettrich; Chief Financial Officer; Quantumscape Corp Jordan Levy; Analyst; Truist Securities Winnie Dong; Analyst; Deutsche Bank Mark Delaney; Analyst; Goldman Sachs Mark Shooter; Analyst; William Blair Joe Spak; Analyst; UBS Operator Good day and welcome to QuantumScape first quarter 2025 earnings conference call. John Seger, QuantumScape's Vice President of Capital Markets. You may begin your conference. John Seger Thank you, operator. Good afternoon and thank you to everyone for joining Quantumscape's first quarter 2025 earnings call. To supplement today's discussion, please go to our IR website at to view our shareholder letter. Before we begin, I want to call your attention to the safe harbor provision for forward-looking statements that is posted on our website as part of our quarterly update. Forward-looking statements generally relate to future events, future technology progress, or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize. Actual results and financial periods are subject to bits and uncertainties that could cause actual results to differ materially from those projected. There are risk factors that may cause actual results to differ materially from the content of our forward-looking statement for reasons that we cite in our shareholder letter, Form 10K and other SEC filings, including uncertainties posed by the difficulty in predicting future outcomes. Joining us today will be Quantumscape's CEO Dr. Siva Sivaam and our CFO, Kevin Hetrick. With that, I'd like to turn the call over to Siva. Siva Sivaram Thank you, John. I would like to begin by discussing our upcoming product launch. We continue to work closely with our prospective launch customer. As a reminder, this launch program is designed to be a low volume but high visibility project. It is intended to serve as a real-world vehicle demonstration, highlighting the exceptional performance characteristics of our technology platform as a step towards large scale commercialization. The program is planned to unfold over multiple phases with field testing slated to begin in 2026. This quarter, we commenced shipping QSE-5 samples for module and systems level integration and testing, including design validation and calibration of the battery management system. This is consistent with our development approach. We focus on getting rapid customer feedback while making systematic and methodical improvements. We are tracking to the shipment targets we have established with our large customers. These shipments are powered by a raptor separator process, which is exceeding our key benchmarks for yield and quality. Raptor is our workhorse for both customer shipments and development activities on our technology platform as we progress towards baselining our Cobra process. Cobra is a step change innovation in ceramics processing, which can enable an order of magnitude improvement in separated productivity relative to raptor. Next, a word on our progress towards our annual goals. Our first key goal for the year is to bring the cobra separator process into baseline production. This project is ahead of schedule. All the required se processing equipment has already been installed, and qualification is progressing well. We expect to bring cobra into the baseline in Q2. Our second goal is to install higher volume cell assembly equipment to match the higher throughput of Cobra. Working as a joint team with on-site Powerco engineers, we're enhancing the level of equipment automation, allowing us to increase the output and quality of QSE-5 samples. These equipment designs also represent an important piece of the technology platform that Powerco will use in their large scale production. We have placed purchase orders for key pieces of the equipment, and we'll upgrade the baseline continuously as they arrive. Our third goal for 2025 is to begin shipping QSE-5B1 samples. And this goal remains on track. These cobra-based samples will go into the launch program, which is intended to demonstrate the exceptional performance capabilities of the QSE-5 platform in a real-world application. B1 cells are the version that will supply the field-testing phase of the launch program in 2026. Our fourth annual goal is to expand our commercial engagements. On this front, we continue to intensify development activities with Powerco, the battery manufacturing company of the Volkswagen Group, as we work towards industrializing our technology for gigawatt-hour scale production. In Q1, we welcomed top leadership from the Volkswagen Group and PowerCo to personally review the progress made by the joint team. Powerco is the anchor customer in our growing technology ecosystem. To further expand this ecosystem, we are working with additional automotive OEM customers, as mentioned in our last earnings call. We're also building a global network of equipment vendors, material suppliers, contract manufacturers, and technology partners. Leveraging the expertise of industry leaders across the value chain. To that end, We have announced the first phase of an agreement to explore a collaboration with Murata Manufacturing for ceramics production. Murata has a deep expertise in high precision ceramics which makes them an exceptional partner as we look to scale production of a proprietary ceramic separator. By combining our groundbreaking Cobra process with Murata's proven capabilities and global manufacturing strength, we can accelerate the industrialization of our solid-state battery technology while maintaining our strong focus on innovation and technological advancement. Last, I want to pull back and look at the big picture. This quarter we released our strategic blueprint. This is our playbook for commercializing our next generation battery technology at a global scale, and we encourage all shareholders to view it. Here, we'd like to highlight a few important aspects of this blueprint. First, as a technology company, we believe our business model is resilient to changes in global trade regimes. By partnering with customers around the world and licensing our technology for their own production, we can achieve a global impact while limiting our exposure to the risks presented by policy changes. Second, we will continue to create value by pushing the technology frontier. We have a development roadmap of future innovation in battery technology that builds on our solid-state lithium metal platform, and these innovations are designed to unlock higher performance, drive wider adoption, and increase our value as a company. Finally, we are building an ecosystem of partners to help rapidly bring our technology to the world. Technological revolutions can only happen when companies around the world see the opportunity and work together to make it a reality. Our framework agreement with Murata Manufacturing represents another important step in this direction. When looking at the global perspective, it is clear that the electric power train is set to dominate the automotive industry, and automakers are looking to solid state battery technology to remain competitive. We believe our technology age, when combined with our strong balance sheet and consistent record of execution, sets us apart as a clear leader in solid state batteries. And we are well positioned to expand our advantage and generate exceptional shareholder value over the long term. Thank you for your support, and we are excited to report on our continued progress over the coming quarter. With that, let me turn things over to Kevin for a word on our financial outlook. Kevin Hettrich Thank you, Siva. Capital expenditures in the first quarter of 2025 were $5.8 million. Q1 CapEx primarily supported facilities, and equipment purchases as we prepare for higher volume QSE-5B1 sample production using the cobra separator process. We expect CapEx spend to be well above Q125 levels through the remainder of 2025 as we order, install, and qualify higher throughput equipment to support our targeted launch program and engage prospective customers. We reiterate our full year guidance for CapEx to be between $45 million and $75 million. GAAP operating expenses and GAAP net loss in Q1 were $123.6 million and $114.4 million respectively. We forecast EPS to remain roughly flat throughout the year as increased spending to support higher output levels and the impact of the current tariff policy, we expect to be broadly offset by improvements in operational efficiency such as the planned transition from our raptor to our cobra separator process and cost saving initiatives. Adjusted EBITDA loss was $64.6 million in Q1, in line with expectations. A table reconciling GAAP net loss and adjusted EBITA is available in our shareholder letter. We reiterate our full year guidance for adjusted EBITA loss to be between $250 million and $280 million. We ended Q1 with $860.3 million in liquidity and maintain our guidance that our cash runway extends into the second half of 2028. Any additional funds from customer inflows or capital markets activity would further extend this cash runway. John Seger Thanks, Kevin. We'll begin today's Q&A portion with a few questions we've received from investors or that I believe investors would be interested in. Siva, first question for you. Can you update our investors on our automotive customer engagements during the quarter and explain how that affects our existing customer? Siva Sivaram John, let me start with our existing customer. The product launch that we are planning is going very well. The teams are working hand in glove. And we are shipping the volumes that the customer needs for module and systems level testing. That means our customers will be packing these cells into larger modules, connecting them electrically into the battery management system, the BMS, and calibrate that BMS according to a specific performance profile of our cells and the requirements of the application. Of course, to ship in these volumes, we have to pass the UN 38.3 safety tests. We have now passed these tests, which is another important milestone in our commercialization roadmap. This is a well-planned launch. And we'll have exciting details to share as we progress. Now coming to our additional automotive volumes. The response from our customers to the licensing business model has been overwhelmingly positive. We continue to be in active discussions with our prospective customers. We've developed an engagement model with Powercore as the first customer that allows us to collaborate with our customers to design bespoke solutions that fit their road maps. Each relationship is unique. And these are long-term engagements. And these customers are in our facilities working with us. In stark contrast to public sentiment, our conversations with our customers have a sense of urgency and enthusiasm. The world needs a better battery, and our customers see the step change improvement of our technology. We can offer a no compromise solution that beats internal combustion engines on pure driver experience. John Seger Thanks, Siva. Today, QS and Murata Manufacturing announced the framework agreement for ceramics production using our Cobra technology. Could you please elaborate on their role in a licensing model and how this fits into our overall strategic blueprint? Siva Sivaram Absolutely. Our engagement with partners like Murata is fully aligned with our strategy as a technology licensing company. The vision is to develop our proprietary solid state battery technology platform and then partner with world class manufacturers to bring it to scale efficiently. The first major step in that journey was our agreement with Powerco, which is targeting 40 to 80 gigawatt hours of production capacity. To give you a sense of scale, even 40 gigawatt hour translates into hundreds of millions of square meters of separator components. Manufacturing at such high volume and with the necessary quality requires collaboration with highly capable partners. That's where Murata comes in. They are a global leader with decades of experience in high precision ceramics, and we are excited about the opportunity to leverage their expertise. By combining our groundbreaking cobra separated production process, with Murata's proven capabilities and global manufacturing strength, we can accelerate the industrialization of our solid state battery technology while maintaining our strong focus on innovation and technological advancement. As we continue to grow, we expect to bring in additional partners across different parts of the supply chain. Our approach is intentional and modular. We are nurturing a broader ecosystem of collaborators who can help us scale while protecting our IP. This model draws from my experience in semiconductors where desegregation of the supply chain enabled innovation. Instead of vertical integration, each player focuses on what they do best. Fabulous design companies innovate, foundries manufacture, and everybody wins by operating at scale. This approach doesn't just support IP creation, it also strengthens IP protection by separating know-how across specialized partners with well aligned incentives. We are applying that same logic here. John Seger Thanks again, Siva. Kevin, turning to you now. You've reaffirmed our guidance in the shareholder letter today. I have two questions for you on that front. First, can you discuss the tariff implications on our financial outlook in the near term? And then, can you discuss how our supply chain exposure compares to that of conventional lithium ion. Kevin Hettrich On the topic of tariffs, I have 3 points to make. First, we forecast tariffs in their current form would only have a marginal impact on our cost of materials and equipment. We're actively working to mitigate this by evaluating lower tariff sources and through continuous efforts to reduce costs. We are not changing guidance and we reiterate our adjusted EBITDA laws and CapEx guidance for the year. Second, China has restricted export of certain critical materials to the US. We have not been impacted by these restrictions. I would also highlight that our Amphenol design eliminates graphite from the cell, a material dominated by China from a supply chain point of view. Our Amphenol design both removes the cost of the anode as manufactured along with the associated supply chain risk. Third, we are a global technology licensing company. Our success derives from innovation, ecosystem development, and enablement of our licensing partners. We remain focused on meeting the massive worldwide demand for significantly higher performing batteries. John Seger Okay, thanks so much. We're now ready to begin the live portion of today's call. Operator, please open up the line for questions. Operator (Operator Instructions) Jordan Levy, Truist Securities. Jordan Levy Afternoon all, I appreciate the commentary on the Murata deal here. Maybe just to dive a little bit more in on that, is the thought that they kind of step in after you've worked out some of the commercialization IP and pathway for separator production, or are they going to be kind of an integral part of that kind of trajectory? Siva Sivaram Jordan. Murata, as is a world leader in precision ceramic production. They already supply a lot into both the electric vehicle and consumer electronics markets. And they have a global presence in high volume ceramic manufacturing, so they are a well-planned partner for us to ramp high volume production. The excitement that they showed when they came here to look at the Cobra technology was one of those things to behold. I mean, we were working together, and they see the possibilities of high volume thin ceramic production together. So we expect them to be a very integral part of our supply chain as we develop the ecosystem. The QS ecosystem as it grows up, with there, they get part of it. Kevin Hettrich The only other thing I could add is that in addition to the speed and the capital efficiency with which we partner with Murata, working with partners as part of the broader QS ecosystem adds value to our core technology platform as more global players invest resources and know-how into our ecosystem, the platform becomes more robust and ultimately more valuable. Jordan Levy Super helpful, I appreciate that. And then maybe just a quick follow on any incremental IP licensing deals. I recognize there's nothing to announce today. But just to kind of gauge, the conversations you're having, have you seen any, uptick in excitement on your potential customer base or anything with all the geopolitical environment and tariffs show? Siva Sivaram And Jordan, this is a fairly important issue that we are addressing. In general, ever since we announced that we are a technology licensing company and when we started talking to our customers, there is a real uptick in the urgency with which they want to proceed and the excitement at the technology. Overall, there may be choppy waters in the industry, but our interactions are exactly to the contrary. We see them really want to partner with us and develop these long-term relationships where we can develop bespoke solutions for their roadmap needs, and that has, been very encouraging to follow. Jordan Levy Thanks so much. Operator Winnie Dong, Deutsche Bank. Winnie Dong Thanks for taking my question. First question is, I was wondering if you can provide an update on the work that you guys are doing with Powerco itself. And last time I believe you mentioned, there's some personnel devoted to the joint expert both on QS and and Powerco. So I just wondering if you can provide an update on that. And then my second question is on the initial phase of the agreement with Murata. What is included in the first phase and then for future partnership purposes in subsequent phases, I'm just curious how that partnership will look like. Is it going to be more of a three-way relationship between Murata, you, and, future customers, or are they going to be essentially like a supplier to you guys? Thank you. Siva Sivaram Winnie, on the first question, on the political partnership, if you come by our offices, you'll see a whole bunch of Germans walking around in the labs working closely with us. We are Increasing the automation and efficiency of the line and integrating cobra into it, and that integrated line with cobra is what is going to be used for B1 samples that we'll be shipping later. And they are working with us day in and day out in increasing the capability of this line. And that collaboration is going very well. As you saw, we had some of the highest levels of people from Volkswagen and Powerco spend time with us. And they are continuing to express their strong support in the joint work that's going on between the two companies. Coming to your question on how partnerships such as Murata are going to evolve over time, each of this is going to be unique. There's not going to be a one size fits all relationship as we look at ceramic manufacturers, equipment manufacturers, materials manufacturers, and cell manufacturers with our OEM partners. Each of them is going to have a relatively specific, agreement that we'll be developing to strengthen the entire supply chain so that you can take this truly differentiated battery platform and deliver it to the end customers. And we want to get there as fast as possible in the most efficient way possible. That's why we are developing this QS ecosystem, in a broad-based fashion and looking at partners wherever they are, to come and work with us. Operator Mark Delaney, Goldman Sachs. Mark Delaney Yes, good afternoon. Thanks for taking my questions. First one's on the competitive landscape and hoping to get your latest thoughts on where that stands. And given some of the technology progress announced in recent months from some of the LFP companies like BID and CATL around progress they're making with very fast charging capabilities, so-called 5 minute batteries, has that affected your views of the competitive landscape and what you're seeing from, additional perspective automotive customers? Siva Sivaram Hey Mark, yes, we've been very closely following along with this series of announcements from BYD and cattle on these LFP batteries from China. Now first and foremost, these are giants of companies that have really worked hard to push the envelope on lithium-ion, conventional lithium ion batteries capabilities. They have pushed it farther and farther. However, on these specific announcements, there's a lot of data that is still lacking, so we don't get full information on it. What we do see, however, is we have a no compromise solution in the QS platform. The QSC-5 with respect to safety, cycle life, energy density, power, cost, fast charge, range, put them all together. This is the only no compromise solution out there. And you can see that by the excitement from the large OEM customers who are coming into our shop and working with us. So we are following these developments from China carefully. We are taking them very seriously, but we are still very confident on our lithium metal anode free. As you can see, there, there's no anode. We don't have to think about having to find graphite or or anything else to put on that side. The best is to not to have an anode and we have that as a solution. So we feel confident even in light of all these competitive announcements on the strength of our offering. Mark Delaney I appreciate all the thoughts on that. My other question was on the potential collaboration with Murata. And do you think customers that are licensing your technology can cost effectively scale the higher volume production of the separator for series production vehicles if you don't come to an agreement with Murata, or is this just about making it faster and more efficient than you'd previously been planning? Thanks. Siva Sivaram Precisely the latter. So you can see that we are a technology company first and foremost, we produce a lot of intellectual property. So our first job is to make sure that intellectual property is well protected and we're able to scale that into a product very quickly. We continue to develop the core technology. We developed the cobra process. We developed this highly scalable process. That makes us even more incentive to go find partners who are very good high-volume manufacturers in that specific area that allows us both to combine our skills and get it to market fast. This is the, as you would see that the network effect of us having multiple similarly minded, similarly motivated, well aligned partners trying to take this core intellectual property and get into high volume. That is the. Mark Delaney Understood. And I guess just one last one, before I turn it over, as you're exploring this potential collaboration with Murata. Is that something you expect Power Code to be involved with as well, or is this just between you and Murata and, anything with Power Code would be separate from that. Thanks. Siva Sivaram So -- this contract, this doesn't mean development arrangement is between Quantumscape and Vrata manufacturing. That does not mean we don't keep our OEM partners fully informed of what we are doing, and is fully supportive of what we are trying to achieve over here. And As you probably have seen in our strategic blueprint. In our global ambition, it is important that we do have these kinds of partners around the world who are working closely with us. And our OEM partners actually are very encouraged that we are putting this global QS ecosystem together. Operator Jed Dorsheimer, William Blair. Mark Shooter Hi, you have Mark Shooter on Dorsheimer. Congrats on the progress and collaboration with Murata. As you think through other collaborations, especially for some manufacturing, would Powerco be open to manufacturing for non-VW customers? Assuming no, how are you thinking through finding other cell manufacturing supply and our customer is China sensitive? Siva Sivaram Mark, we look at this, in a fairly systematic fashion. We look at all opportunities and by the way, I will not speak for for what they would or they would not do. We do look at other large OEMs, auto OEMs who do want to make cells. And we are not ruling out discussions with other cell manufacturers, equipment manufacturers, materials manufacturers, and ceramic manufacturers all across the spectrum. So this is part of what we'll be looking at for various specific applications. Mark Shooter That's very helpful, thank you. Cut to last night and Elon Musk, he mentioned that the best anode is no anode at all, to me that sounds like he's referring to an anode designed just like Quantum Scape but it was in reference to, supply chain stress and how China dominates the graphite market. How has customer conversations developed around that and and the supply chain and tariffs since April second? Siva Sivaram Our architecture has been anode free from the time we have disclosed it outside. Anode free architecture, we have always felt is the right way to build a high performing battery. We have been very careful in making sure that the intellectual property around it is well protected in the way we build it. Not having graphite has always been a strength of ours and and the best way to have a part is not to have that at all, not to have the anode at all. Having said that, overall, you saw Kevin's answer earlier with respect to tariffs. We have marginal impact from tariffs in our current annual operating plan. And our method of developing a platform and working globally where we are not the ones moving material around is the right way for us to develop create shareholder value. We are very careful in making sure that our partners, our manufacturing and OEM partners know that the technology we are developing is not dependent on any one particular how to obtain material. For example, the separator is made of earth abundant materials. So in general we are watching the various policy changes carefully. But I think our age will continue to be in us developing new innovation and moving the frontier forward and making sure our partners are coming along with us. Kevin, you want to add anything to that? Kevin Hettrich No, just it is a view we resoundingly agree with. The addition of the anode in a conventional cell, it adds weight and volume. It limits the power performance, specifically the ability to charge. It has expensive materials to buy. You have to transform it. And in today's Environment adds risk to the supply chain, it's one of the major sources of life loss. And it's chock full of flammable materials, eliminating it is what leads to the no compromise solution that that we're offering that is superior on all of these dimensions at the same time. So we very much agree with, the viewpoint, and that's core to our technology platform and it's a platform we are the clear world leaders in. Mark Shooter Thank you guys, if I can sneak one more in here. See, I noticed that the language is a bit broader in your strategic blueprints about applications outside of the EVs. Are you guys opening up to potential other high value applications or outside of the EVs and is anything on the horizon? Siva Sivaram As you know, our first focus is on the automotive sector. That is the highest volume sector out there. But we are producing a very high performance battery that is a no-compromise battery that is useful across all fronts. So applications such as the rapid growth in data centers, evolving aviation applications, these are all -- and consumer electronics, these are all very important. But as a company, we are focused today on automotive but keeping our eyes open on these new applications. Mark Shooter Thank you. Operator Joe Spak, UBS. Joe Spak Thanks. Good afternoon. I wanted to circle back to Mark's question a little bit on the sort of competitive environment and really sort of better understand what's going on in your, sea level sort of discussions. Because to his point and as you sort of alluded to, there's a lot of fast moving progression going on with those two players in terms of density, fast charging, sodium ion, you name it, a lot of which have the same or similar benefits to what you can offer. So I guess what I'm trying to understand is this giving them any more pause in terms of sort of trying to sign up for a certain technology until they see how some of these other developments play out or they -- has there been any change in the tone of those conversations? Siva Sivaram Yeah, so, number one, the fact that the two Chinese players are intensely competitive with each other is a good thing for the industry, and that's always good. However, if you listen to the whole thing carefully, no one is promising any new fundamental technology, nor is there a mention of a true solid state battery. Both of them have explicitly stated for the long term that solid state batteries are the future. In this current case, they are taking LFP batteries and working everything around it, so that they can enhance the life, enhance the performance of an existing generation of technology, which is a very good thing to do. However, we are a different paradigm. We start at a different part in the S curve. Our job is to make sure we continue to push the frontier on the solid-state battery, which is what makes us feel all the more convicted in our beliefs that we need to be there as soon as possible in high volume because we have a solution that the industry needs to replace internal combustion engines. Joe Spak But maybe you could help me understand then why I guess the like the ends justify the means, like if you get the performance you need or want out of their evolving technology, then why would -- like, even if there is a solid state solution, what becomes the advantage to move to that versus if the performance and costs are similar? Siva Sivaram Yeah, if you notice when these data are announced, they don't give you all of the information about those solutions. They don't talk about the safety. They don't talk about the safety of putting a megawatt of power into a cell at any given time which contains a combustible medium. They do not talk to you when they do cycle high -- fast charging what the cycle life is. They don't tell you how large those packs have to be to get that kind of range. This is the trouble with making conclusions out of incomplete datasets. We can always make one of something that looks very good. What we are promising you and what we are building our company on is what I keep going back to, and no compromise on all of those and first and foremost on safety. We need to be able to make sure we give you a battery that is very safe and performs at the end of its life and cycle life as well as it did on the first cycle, even while I'm charging it very fast, even while I give you the range, and even while I'm giving you cost at scale. And I think the reason all of our customers keep coming back to us is because none of these answers that they hear is satisfactory to them. Joe Spak Fair enough. I guess another one just going back to the [eno] comment from the other night. I think the first time you sort of mentioned (inaudible) or Tesla has sort of mentioned maybe since, I think they filed a patent back in maybe 2020 or something like, do you have any understanding of what it is they are trying to accomplish, how similar or different it might be from your solution? Siva Sivaram Look, we don't talk about our potential customers or existing customers. It is for them to talk. We have been talking about ourselves and what an anode-free architecture is going to be for a long time. We have not been shy about talking about it in public. So it is good to see more people coming around to our way of thinking, and I want to leave it at that. Joe Spak Okay. Last one, do you have any updated thoughts on the timing for when you might be able to provide the street with a little bit more context on some of the financial implications from the licensing model? Siva Sivaram Kevin, you want to take that and the -- Kevin Hettrich We've given the general framework that's long term under the licensing model. You have royalty from the from the sale of product that involves our technology, and then in advance, the other part of the model would be cash flows before that would take one of the following forms or multiple of the following forms, things like pre-pays, things like reimbursement for development tailored to that product or NRE type revenue, but we haven't gone into specifics beyond that framework. Siva Sivaram So to round that off, so we do expect that a licensing business model to have multiple different streams of revenue. And the ecosystem is an important part of making sure these revenue streams are well rounded. And at the appropriate time, we'll come and give you a full financial picture on this. Joe Spak Thank you very much. Operator (Operator Instructions) There are no further questions at this time, I'll turn the call to QuantumScape management for closing remarks. Siva Sivaram Thank you, operator. With that, I would like to thank our employees for their dedication, our partners for their trust, and our shareholders for their continued support. We look forward to updating you on further progress in the months to come. Thank you. Operator This concludes today's conference call. Thank you for joining. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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01-05-2025
- Automotive
- Yahoo
2 High-Risk, High-Reward Electric Vehicle Stocks for the Future of Transportation
QuantumScape's solid-state battery would improve range, cost, and safety. It is building toward commercialization and has a cash runway until late 2028. EV maker Lucid has enjoyed five consecutive record quarterly deliveries. It seems almost certain the future of transportation is via electric vehicles (EVs). EVs have swept over countries like China quickly, and the U.S. more slowly, but global EV sales are on the rise and show no signs of reversing. Here are two stocks well-positioned to thrive in the future of electric transportation. QuantumScape (NYSE: QS) is a next-generation battery company focused on bringing its solid-state battery design to commercial production. It's a no-brainer in terms of product, as the solid-state battery will eliminate costly components as well as improve charging time, range, safety, and energy density. In other words, if QuantumScape can execute its technology and move to commercial production, automakers will be lining up at the door for its batteries. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » When it comes to 2025 goals, the company is progressing well. It's ahead of schedule in bringing the Cobra separator process into baseline production, which it expects to do during the second quarter. It also remains on track for its goal of shipping QSE-5 BI samples, which are intended to demonstrate the performance capabilities of the QSE-5 in a real-world application. Another good sign for the company's ability to bring its technology to commercialization is the number of partnerships it has. In fact, QuantumScape just announced an agreement to explore a collaboration with Murata Manufacturing for ceramics production. Essentially, it's a collaboration with a company that owns decades of experience in manufacturing ceramics for electronic components, energy storage, and industrial applications. If the partnership helps push QuantumScape's battery technology closer to commercialization, it'll be a highly valuable collaboration. Last but not least, the company has some runway before it has to worry about cash. The company ended the first quarter with over $860 million in liquidity and expects its cash runway to extend into the second half of 2028. It's a big if, but if QuantumScape can bring its technology to market, it has the partnerships and joint ventures to thrive as the world transitions to EVs and demands better battery technology. When investors think of EV automakers to invest in, Lucid Group (NASDAQ: LCID) might not make the top of your list. That's fair, as the company's early years were plagued with production disruptions, delays, and disappointments. But don't look now: the company is gaining traction and has momentum in its favor. Lucid delivered 3,109 vehicles in the first quarter, a strong 28% gain over the prior year, and it marks the fifth consecutive record quarter for deliveries. It has serious momentum. There are two additional developments that work in Lucid's favor. The first development is that it seems what negatively impacts Tesla works in Lucid's favor. "Tesla owners always have been a source of customers for us," said Lucid's Interim CEO Marc Winterhoff during a Fox Business interview. "We saw a dramatic uptick in the last two months. Right now, 50% of all the orders that we have are from Tesla owners." As Tesla owners increasingly see owning a Tesla vehicle as political statement, its vehicle lineup is aging, and its Cybertruck was a commercial flop, Lucid has been plucking consumers looking for an equally advanced EV alternative to Tesla. Another development working in Lucid's favor is that deliveries of its Gravity SUV are set to hit at the end of April and continue to accelerate through the coming months. That very likely means Lucid will continue its streak of record delivery quarters, especially considering the Gravity will have a much bigger addressable market than the company's Air sedan. Both of these companies are high-risk, high-reward investments and should remain a small position in any portfolio. There's a very real risk that QuantumScape fails to do what has yet to be done with its solid-state battery technology. There's even risk that another company has a breakthrough and beats QuantumScape to the market. But if QuantumScape delivers on its vision, investors will be handsomely rewarded. For Lucid, the company continues to burn cash and needs its Gravity to be a hit with consumers. But if it keeps its sales momentum going and continues through its product pipeline of vehicles following the Gravity, it could have a very bright future. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor's total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. 2 High-Risk, High-Reward Electric Vehicle Stocks for the Future of Transportation was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
28-04-2025
- Automotive
- Yahoo
Should You Buy QuantumScape While It's Below $4.50?
Battery technology is at the heart of the electric vehicle (EV) revolution, and over time, these batteries have evolved from bulky, low-efficiency power sources to the high-density energy packs we see today. This technology has pushed EVs forward, but further improvements could be made. That's where QuantumScape (NYSE: QS) enters the picture. QuantumScape is developing next-generation battery technology that should enhance performance and efficiency. This technology allows for fast charging and longer battery life, which could address some of the major challenges EVs face today. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The company is reaching some critical milestones. However, it remains pre-revenue and has burned cash since going public in 2020. QuantumScape stock is around an all-time low. But is it a good buy today? QuantumScape develops advanced solid-state lithium-metal batteries that could significantly improve energy density, charging speed, and safety compared to traditional batteries. The higher energy density allows for longer driving ranges and smaller vehicle sizes with less weight. It says vehicles could get up to 400 to 500 miles on one charge with its batteries, which also benefit from having a longer battery lifespan. Volkswagen formed a joint venture with QuantumScape in 2012 and has invested over $380 million in the battery maker to develop and scale up its battery production. Last year, QuantumScape hit a significant milestone when it shipped a low-volume batch of B0 samples, which are its near-production battery prototypes used for advanced testing and performance validation. The low-volume production of its QSE-5 solid-state lithium-metal battery cell was part of what QuantumScape calls the Raptor separator process. This is the first stage of its separator heat treatment process, which enables faster separator production. Next is its Cobra separator process, which will streamline separator manufacturing, allow for more efficient, higher-volume production, and help QuantumScape get closer to commercial production. In its first-quarter letter to shareholders, QuantumScape management said it is ahead of schedule in getting its Cobra separator process into baseline production. The company remains on track to ship QSE-5 B1 samples by this year, supporting further field testing in 2026. The big question for investors is when QuantumScape will start generating meaningful revenue. Right now, the company is pre-revenue, so capital is crucial. At the end of the first quarter, the company had around $860 million in liquidity, or enough capital to extend into the second half of 2028, according to management. This is good news for investors in the near term because the company doesn't have immediate cash needs. That said, QuantumScape will need to continue progressing with its production and manufacturing processes, and investors will need to be patient. Analysts covering the company project that QuantumScape won't post any revenue until 2026. Even so, they project the revenue will be around $3.8 million. Analysts see revenue accelerating in 2027 to $50.6 million and then exploding higher in 2028 to $490.6 million as the company reaches commercial scale. QuantumScape's battery technology could revolutionize EVs and make them more appealing for widespread adoption. However, the company is still going through production and testing phases, and it will be several years before it begins to generate meaningful revenue. Investors purchasing shares today will need to be patient as the company progresses. That said, the stock is vulnerable to further declines, especially if its development timeline gets pushed back for any reason. While I'm intrigued by the company and its technology, most investors are best off keeping this stock on a watch list and monitoring its progress toward commercialization. Before you buy stock in QuantumScape, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and QuantumScape wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. Should You Buy QuantumScape While It's Below $4.50? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Here's Why QuantumScape Stock Is a Buy Before April 23
QuantumScape (NYSE: QS) initially attracted a stampede of bulls when it went public by merging with a special purpose acquisition company (SPAC) on Nov. 27, 2020. The solid state battery maker's stock opened at $24.80 and surged to a record high of $131.67 less than a month later. At the time, it claimed it could commercialize its first batteries by 2024, and that its revenue would reach $14 million in 2024, $39 million in 2025, and $275 million in 2026. But like many other SPAC-backed start-ups, QuantumScape missed its lofty goals by a mile. It still hasn't commercialized any of its batteries yet, and it doesn't expect to achieve that goal until 2026. As a result, it isn't generating any revenue as it racks up steep losses. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » That's why QuantumScape's stock now trades at less than $4. But with a market cap of $2.1 billion, a lot of growth is still baked into its valuation. It's also increased its number of outstanding shares by 57% since its public debut with its stock-based compensation and secondary offerings. All of those issues have made it an easy target for the bears. Yet over the past three months, QuantumScape's insiders bought nearly 5 times as many shares as they sold. That warming insider sentiment suggests its volatile stock could finally bottom out in the near future. Let's review what happened to QuantumScape over the past year -- and why its stock might be worth buying ahead of its next earnings report on April 23. QuantumScape's solid-state lithium metal batteries generate electricity from solid electrolytes instead of the liquid electrolytes found in traditional lithium-ion batteries. That difference allows them to resist higher temperatures, last longer, and be charged more quickly. However, they're also much more expensive to produce than lithium-ion batteries. That's why they've only been mass-produced for smaller devices like wearables and pacemakers instead of electric vehicles. QuantumScape wants to buck that trend and reach the EV market with its QSE-5 batteries, which have an energy density of more than 800 Wh/L (watt hours per liter) and can be rapidly charged from 10% to 80% in less than 15 minutes. By comparison, traditional lithium-ion EV batteries have an average density of 300 to 700 Wh/L with an average fast-charging time of 20 minutes to an hour. That plan sounds ambitious, but QuantumScape is firmly backed by Volkswagen (OTC: VWAP.Y), which has co-developed those batteries with the company over the past decade. Volkswagen even launched a new group, PowerCo, to start testing QuantumScape's prototype batteries in 2022. QuantumScape finally started shipping the first samples of its QSE-5 batteries to automakers in the second half of 2024. It plans to keep shipping more test samples this year as it transitions from its current Raptor separator process to its newer Cobra separator process. It expects that upgrade to boost its cell reliability, yields, and equipment productivity -- and those improvements could pave the way toward the mass production and commercialization of its batteries in 2026 and beyond. QuantumScape's near-term plans sound promising, but the Trump administration's unpredictable tariffs could still disrupt its supply chain, spike its component prices, and throttle the growth of the entire EV market. Other major automakers, including Toyota Motor and Nio, are also making progress toward mass-producing their own solid-state batteries. Those challenges could force QuantumScape to postpone the commercialization of its batteries again and rack up even steeper losses. That's probably why 15% of its floating shares were still being shorted at the end of March. But on the bright side, that elevated short interest could set it up for a minor short squeeze if it posts a stronger-than-expected earnings report on Wednesday, April 23. For 2025, analysts don't expect QuantumScape to generate any revenue as it racks up a net loss of $464.4 million. For 2026, they expect it to generate just $3.5 million in revenue as it slightly narrows its net loss to $426.5 million. In other words, Wall Street has set the bar so low that any bright spots in its earnings report -- such as a limited impact from the Trump administration's tariffs, more licensing deals, and the increased production of its QSE-5 samples -- could drive its stock higher. QuantumScape is still an extremely speculative stock, and it would be reckless to go all-in at these levels before more green shoots appear. But if you believe it can successfully upgrade its separator process this year and commercialize its first batteries by 2026, it might be a good idea to nibble on the stock before it posts its next earnings report. Before you buy stock in QuantumScape, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and QuantumScape wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $593,970!* Now, it's worth noting Stock Advisor's total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. Here's Why QuantumScape Stock Is a Buy Before April 23 was originally published by The Motley Fool
