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QuantumScape (NYSE:QS) witnessed a 5% drop in after-hours
trading on Feb. 14 following the
release of its Q4 earnings. The company reported losses per share of 23 cents, slightly
better than analysts’ forecast of a 34-cent loss and shared its plans for 2024.
As anticipated, the Silicon Valley-based firm did not generate any revenue in the quarter.
Wall Street analysts do not anticipate significant sales from the startup until at least
2026. However, measures to reduce costs, announced in December, contributed to a 2-cent
reduction in losses per share compared to the previous year.
In a letter to shareholders, QuantumScape’s CEO Jagdeep Singh reassured investors about the
company’s progress in developing more efficient batteries. He mentioned that the firm had
shipped its first A0 prototype cells to clients at the beginning of 2023 and expects to
deliver its Alpha-2 sample later this year. The management is also looking forward to
commencing low-volume production of its first commercial cell, QSE-5.
Nonetheless, investors have grown increasingly apprehensive about QuantumScape’s ability to
deliver on its commitments. The battery startup’s shares have declined by 35% over the past
year, and competition from innovative Chinese firms is potentially complicating
QuantumScape’s path to profitability. Furthermore, a surplus of electric vehicle supply has
impacted the demand for lithium metal and batteries, leading to an astonishing 83%
depreciation in lithium prices on Chinese exchanges over the past year.
QuantumScape anticipates its capital expenditure to be within the range of $70 million to
$120 million, approximately consistent with the figures from 2023. The company also
projects its adjusted EBITDA to be between a loss of $250 million and a loss of $300
million.
On the date of publication, Thomas Yeung did not have (either directly or indirectly) any
positions in the securities mentioned in this article. The opinions expressed in this
article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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AI prompts. These prompts help distill real-time quarterly earnings data and combine it
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