The solid-state battery maker still has a lot to prove. QuantumScape (QS 1.41%) was one of the market's hottest investments during the meme stock rally in late 2020 and 2021. The developer of solid-state batteries went public by merging with a special purpose acquisition company (SPAC) in November 2020, and its stock opened at $24.80 before soaring to a record high of $131.67 less than a month later. At its peak, QuantumScape's market cap reached $48 billion. However, the company hadn't commercialized any o ...

The battery start-up might reach its ambitions sooner than expected.In this video, Motley Fool contributors Jason Hall and Tyler Crowe break down the latest investor update from QuantumScape (QS 0.19%), its huge progress on reaching commercial success with its solid-state battery, and whether investors should be buying shares at this stage.*Stock prices used were from the afternoon of May 10, 2024. The video was published on May 11, 2024. ...

The solid-state battery maker still faces formidable challenges.QuantumScape (QS 5.69%), a maker of solid-state batteries for electric vehicles (EVs), initially attracted a stampede of bulls when it went public by merging with a special purpose acquisition company (SPAC) in November 2020. The combined company's stock opened at $24.80 and skyrocketed to its record high of $131.67 less than a month later.But today, QuantumScape's stock trades at about $5. The bulls retreated as the company struggled to commer ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited financial statements for Q1 2024 show a net loss of **$120.6 million**, with total assets at **$1.46 billion** and increased liabilities [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) Total assets decreased to **$1.46 billion** by March 31, 2024, while liabilities increased to **$204.3 million** due to litigation accruals Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $192,321 | $142,524 | | Marketable securities | $817,314 | $928,284 | | Total current assets | $1,045,035 | $1,083,517 | | Total assets | $1,463,978 | $1,501,978 | | **Liabilities & Equity** | | | | Accrued liabilities | $72,331 | $10,180 | | Total current liabilities | $100,673 | $57,095 | | Total liabilities | $204,316 | $161,801 | | Total stockholders' equity | $1,257,872 | $1,338,407 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29%20%28Unaudited%29) Net loss for Q1 2024 increased to **$120.6 million** due to higher operating expenses, primarily general and administrative costs Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Research and development | $83,847 | $76,941 | | General and administrative | $48,054 | $33,037 | | **Total operating expenses** | **$131,901** | **$109,978** | | Loss from operations | $(131,901) | $(109,978) | | Interest income | $12,065 | $6,277 | | **Net loss** | **$(120,628)** | **$(104,631)** | | Basic and Diluted net loss per share | $(0.24) | $(0.24) | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Net cash used in operating activities was **$57.9 million**, offset by **$106.5 million** from investing activities, resulting in a net cash increase Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(57,945) | $(62,319) | | Net cash provided by investing activities | $106,499 | $64,086 | | Net cash provided by financing activities | $1,243 | $4,050 | | **Net increase in cash** | **$49,797** | **$5,817** | | Cash at end of period | $210,369 | $258,733 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Notes detail accounting policies, development status, Volkswagen JV put option trigger, and a **$24.5 million** litigation accrual - The company is a development-stage entity focused on solid-state batteries and has not yet generated revenue from its principal business activities[25](index=25&type=chunk) - In April 2024, the company agreed to settle a securities class action lawsuit. A net charge of **$24.5 million** was recorded in Q1 2024, representing the gross settlement of **$47.5 million** offset by a **$23.4 million** insurance receivable[96](index=96&type=chunk) - Due to certain development milestones not being met, Volkswagen's right to exercise its put rights in the QSV joint venture has been triggered. If exercised, QuantumScape would be obligated to purchase VW's interest for its book value of approximately **$1.8 million**[39](index=39&type=chunk) - Stock-based compensation expense for Q1 2024 was **$19.3 million**, a decrease from **$38.0 million** in Q1 2023. The decrease was primarily due to a **$16.0 million** reversal of previously recognized expense for forfeited options following the former CEO's departure[125](index=125&type=chunk)[133](index=133&type=chunk)[172](index=172&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses pre-revenue status, strategic priorities, **$131.9 million** operating loss, and cash sufficient through H2 2026 - The company is a development-stage entity with no revenue, an operating loss of **$131.9 million** in Q1 2024, and an accumulated deficit of **$3.0 billion**[142](index=142&type=chunk) - Key strategic priorities include continued improvement of prototype cells (energy density, cathode, reliability), scaling manufacturing processes at the QS-0 pre-pilot line, and advancing commercialization through customer sampling (A0 prototypes) and the targeted QSE-5 product[144](index=144&type=chunk)[145](index=145&type=chunk)[149](index=149&type=chunk) - Management believes current cash and marketable securities of approximately **$1.0 billion** will be sufficient to fund operations into the second half of 2026[175](index=175&type=chunk)[179](index=179&type=chunk) Comparison of Operating Results (in thousands) | | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $83,847 | $76,941 | $6,906 | 9% | | General and administrative | $48,054 | $33,037 | $15,017 | 45% | | **Loss from operations** | **$(131,901)** | **$(109,978)** | **$(21,923)** | **20%** | - The **45%** increase in G&A expenses was primarily due to a **$24.5 million** litigation settlement accrual and **$10.6 million** in other legal costs, partially offset by a **$20.1 million** decrease in stock-based compensation expense[172](index=172&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk exposure occurred during the first quarter of 2024 - There have been no material changes to the Company's market risk during the three months ended March 31, 2024[196](index=196&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2024, with no material internal control changes - Based on an evaluation by management, the CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[198](index=198&type=chunk) - No change in internal control over financial reporting occurred during the quarter that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting[199](index=199&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Company settled Warrants and Securities Class Action Litigations in April 2024, with accruals, while derivative suits remain stayed - In April 2024, the company agreed to settle the Warrants Litigation[95](index=95&type=chunk) - In April 2024, an agreement in principle was reached to settle the Securities Class Action Litigation. A net charge of **$24.5 million** was recorded for the potential settlement[96](index=96&type=chunk) - Multiple shareholder derivative suits are ongoing but are currently stayed[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Key risks include solid-state battery development, manufacturing scale-up, Volkswagen partnership, intense competition, and stock volatility - The company faces significant challenges in developing a solid-state battery cell and producing it at high volumes with acceptable performance, quality, consistency, and cost[206](index=206&type=chunk) - The relationship with Volkswagen is subject to risks, including the possibility of termination. Certain unmet milestones have triggered VW's right to exercise its put rights, which would terminate the joint venture and VW's purchase commitments[233](index=233&type=chunk)[239](index=239&type=chunk) - The business is capital-intensive with a history of losses. The ability to become profitable depends on controlling costs and achieving projected cost advantages at scale, which has not yet been demonstrated[223](index=223&type=chunk)[301](index=301&type=chunk) - The battery market is highly competitive, with established lithium-ion manufacturers and numerous companies, including automotive OEMs and state-backed consortiums, investing heavily in solid-state and alternative battery technologies[252](index=252&type=chunk)[253](index=253&type=chunk) - The trading price of the Class A Common Stock has been and may continue to be subject to extreme volatility, influenced by development announcements, competitor progress, and market sentiment[291](index=291&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the last fiscal quarter - None[336](index=336&type=chunk) [Other Information](index=59&type=section&id=Item%205.%20Other%20Information) Several directors and executive officers adopted Rule 10b5-1 trading plans for potential share sales during the last fiscal quarter - On March 1, 2024, Jagdeep Singh, Chairman, adopted a Rule 10b5-1 trading plan for the sale of up to **3,249,520** shares of Class A Common Stock[338](index=338&type=chunk) - On March 4, 2024, Prof. Dr. Fritz Prinz, Director, adopted a Rule 10b5-1 trading plan for the sale of up to **2,297,175** shares of Class A Common Stock[339](index=339&type=chunk) - On March 14, 2024, Dr. Tim Holme, CTO, adopted a Rule 10b5-1 trading plan for the sale of up to **2,544,600** shares of Class A Common Stock[340](index=340&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The exhibits include certifications from the Principal Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act[345](index=345&type=chunk)

Investors are still waiting for a meaningful product advance from Quantumscape.Shares of QuantumScape (QS -6.93%) closed lower today as the development-stage quantum-battery stock reported first-quarter results this morning. Investors seemed to want to see faster progress in the company's battery-cell development.As a result, QuantumScape stock closed the session down 6.9%. QuantumScape still needs timeQuantumScape still has no revenue, and its operating expenses increased modestly in the quarter from $110 ...

Investors in QuantumScape (NYSE:QS) have certainly had a rough go of it lately. Shares of QS stock are down more than 25% this year and considerably more from the company’s 2020/2021 peak. Today’s downside move of more than 8% appears to be driven by the company’s recent first-quarter earnings. The results missed the mark on earnings per share, with a loss of 24 cents per share reported, relative to expectations of only 21 cents of losses for the quarter.This earnings miss led analysts at TD Cowen to lower ...

With QuantumScape’s (NYSE:QS) recent first-quarter earnings report, the devil may be in the details. Earlier, UBS slashed its price target on QS stock to $5 from $9 after the company reported an earnings miss. However, an element of QuantumScape’s core product may have spooked investors.At first glance, the red ink in QS stock appears to be a straightforward matter. On Wednesday, the company — which specializes in solid-state battery (SSB) technology for electric vehicles — reported a loss per share of 24 c ...

QuantumScape Corporation. (NYSE:QS) Q1 2024 Earnings Conference Call April 24, 2024 5:00 PM ET Company Participants John Saager - Vice President of Capital Markets and FP&A Siva Sivaram - CEO Kevin Hettrich - CFO Conference Call Participants Jordan Levy - Truist Securities Operator Good day and welcome to QuantumScape's First Quarter 2024 Earnings Conference Call. John Saager, QuantumScape's Vice President of Capital Markets and FP&A, you may begin your conference. John Saager Thank you, operator. Good afte ...

QuantumScape Q1 2024 Shareholder Letter [Progress on 2024 Goals & Alpha-2 Prototype](index=3&type=section&id=Progress%20on%202024%20Goals%20%26%20Alpha-2%20Prototype) The company achieved its first 2024 goal by shipping energy-dense Alpha-2 prototype battery cells, demonstrating strong performance for EV applications - Achieved the **first of four key goals for 2024** by starting shipments of six-layer Alpha-2 prototype battery cells to automotive customers on **March 27**[2](index=2&type=chunk)[3](index=3&type=chunk) - The Alpha-2 prototype is the core of the first commercial product, **QSE-5**, and is **more energy-dense** than the earlier 24-layer A0 prototype due to higher-loading cathodes and the FlexFrame cell format[3](index=3&type=chunk) - Alpha-2 prototypes demonstrate high discharge power, capable of up to **10C rates**, which in a 100 kWh pack would be nominally equivalent to over **1,000 horsepower**[9](index=9&type=chunk) - The cells have demonstrated the ability to fast charge from **10% to 80% state of charge** in **less than 15 minutes**, meeting the target for the QSE-5 commercial cell[12](index=12&type=chunk) - The company has reduced the externally applied pressure required for cell operation to **0.7 atm**, which is within the range of conventional EV battery pack designs and practical for real-world applications[16](index=16&type=chunk) [Production Outlook](index=7&type=section&id=Production%20Outlook) The company is scaling manufacturing, ramping up the Raptor process for Alpha-2 and QSE-5 samples, and preparing the Cobra process for higher-volume production - The **Raptor process ramp-up** will accelerate downstream cell assembly development, allow for more extensive cell testing, and enable the start of **QSE-5 B0 sample production**[20](index=20&type=chunk) - **Raptor** serves as a learning platform for the next-generation **Cobra process**, which is designed for **higher-volume QSE-5 prototype production in 2025**[22](index=22&type=chunk) - Downstream cell assembly processes are being **streamlined** by simplifying the bill of materials, consolidating process steps, and **increasing automation**[21](index=21&type=chunk) [Financial Outlook & Position](index=8&type=section&id=Financial%20Outlook%20%26%20Position) QuantumScape reported a Q1 2024 GAAP net loss of $120.6 million, maintained 2024 guidance, and ended with $1.01 billion liquidity, extending its cash runway into H2 2026 Q1 2024 Financial Metrics | Metric | Q1 2024 (in millions) | | :--- | :--- | | Capital Expenditures | $14.1 | | GAAP Operating Expenses | $131.9 | | GAAP Net Loss | $120.6 | | Adjusted EBITDA Loss | $76.2 | Full-Year 2024 Guidance | Metric | Full-Year 2024 Guidance (in millions) | | :--- | :--- | | Capital Expenditures | $70 - $120 | | Adjusted EBITDA Loss | $250 - $300 | - The company ended Q1 with **$1.01 billion** in liquidity and expects its cash runway to extend into the **second half of 2026**[24](index=24&type=chunk) [Strategic Outlook](index=8&type=section&id=Strategic%20Outlook) The company's strategy focuses on commercializing its solid-state lithium-metal battery for EVs, leveraging technology, partner collaboration, and disciplined execution - The company's primary goal is to bring its **first commercial solid-state lithium-metal battery cell** to the electric vehicle market[25](index=25&type=chunk) - The strategy is based on **three pillars**: differentiated technology, close customer engagement, and methodical execution of milestones[25](index=25&type=chunk)[26](index=26&type=chunk) [Financial Statements (Unaudited)](index=9&type=section&id=Financial%20Statements%20%28Unaudited%29) Unaudited financial statements for Q1 2024 detail the company's financial position, operations, and cash flows, including $1.46 billion in total assets [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $1.46 billion, total liabilities $204.3 million, and total stockholders' equity $1.26 billion | Balance Sheet Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total current assets | $1,045,035 | $1,083,517 | | Total assets | $1,463,978 | $1,501,978 | | Total current liabilities | $100,673 | $57,095 | | Total liabilities | $204,316 | $161,801 | | Total stockholders' equity | $1,257,872 | $1,338,407 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2024 GAAP net loss was $120.6 million, or ($0.24) per share, an increase from Q1 2023 due to higher operating expenses | Income Statement Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Research and development | $83,847 | $76,941 | | General and administrative | $48,054 | $33,037 | | Total operating expenses | $131,901 | $109,978 | | Loss from operations | ($131,901) | ($109,978) | | Net loss | ($120,628) | ($104,631) | | Basic and Diluted net loss per share | ($0.24) | ($0.24) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw net cash used in operations of $57.9 million, net cash provided by investing activities of $106.5 million, and a $49.8 million increase in cash | Cash Flow Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | ($57,945) | ($62,319) | | Net cash provided by investing activities | $106,499 | $64,086 | | Net cash provided by financing activities | $1,243 | $4,050 | | Net increase in cash | $49,797 | $5,817 | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) The company reconciles GAAP net loss to Adjusted EBITDA, a non-GAAP measure, reporting a Q1 2024 Adjusted EBITDA loss of $76.2 million Reconciliation to Adjusted EBITDA | Reconciliation Item (in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP net loss attributable to Common Stockholders | ($120,648) | ($104,647) | | Stock-based compensation | $19,287 | $37,990 | | Litigation settlement accrual and legal fees, net | $24,455 | — | | Depreciation and amortization expense | $11,983 | $9,505 | | **Adjusted EBITDA** | **($76,176)** | **($62,483)** | - **Adjusted EBITDA** is defined as net loss before interest, non-controlling interest, revaluations, stock-based compensation, depreciation, and other non-recurring charges, and is used to measure **core operating performance**[32](index=32&type=chunk) [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements about technology development and financial projections, highlighting risks like manufacturing scale-up challenges and supply chain disruptions - The letter contains **forward-looking statements** regarding future battery development, performance, and financial forecasts, which are based on current management expectations[35](index=35&type=chunk) - Key risks include **significant challenges in scaling up production**, potential delays in acquiring and operating new manufacturing equipment, **cost overruns**, and the ability to meet **technical milestones** required for commercialization[36](index=36&type=chunk)

Tesla (NASDAQ:TSLA) is preparing to lay off over 10% of its staff. Ford (NYSE:F) is slashing the prices on some EVs by as much as $5,500. This is a tough time to invest in EV-associated companies. With an imminent event adding an extra element of risk for QuantumScape (NYSE:QS), you don’t need to buy QuantumScape stock right now.I understand the appeal of a “forever battery” for EVs. Yet, as the company’s investors have found out the hard way, there’s a disconnect between concept and reality with QuantumSca ...