Core Viewpoint - QuantumScape is a speculative investment in the solid-state battery sector, facing challenges in commercialization despite potential advantages over traditional lithium-ion batteries [1][12]. Financial Performance - In Q4, QuantumScape reported a net loss of $115 million, an increase from $110 million year-over-year, but exceeded consensus forecasts by $0.01 per share [1]. - For the full year, the net loss widened from $430 million to $475 million, with an enterprise value of $2.2 billion [2]. Product Development and Commercialization - QuantumScape has not yet commercialized its batteries, with plans to ship its first QSE-5 samples to select automakers in the second half of 2024 [6]. - The company aims to transition to a more advanced Cobra separator process in 2025 to enhance cell reliability and production yields [7]. - The first commercial batteries are expected to launch for a prospective customer in 2026, likely Volkswagen [8]. Competitive Landscape - Solid-state batteries, while promising, face competition from major automakers like Toyota and Hyundai, as well as startups like Blue Solutions [5]. - QuantumScape's solid-state batteries have an energy density of over 800 Wh/L, significantly higher than traditional lithium-ion batteries [4]. Business Strategy - QuantumScape plans to adopt an asset-light model by licensing its battery designs to other automakers, including PowerCo, to control costs [9]. - Analysts project QuantumScape could generate $4.28 billion in revenue with a net loss of $439 million in 2026, suggesting a valuation of 0.5 times next year's sales [10]. Investor Sentiment - The company has increased its share count by nearly 50% since its public debut, indicating potential dilution for investors [11]. - Insiders have been net sellers over the past year, reflecting a cautious sentiment regarding the stock's future performance [11].

Core Viewpoint - QuantumScape's stock is experiencing a decline due to the announcement of new tariffs by the Trump administration, which could significantly impact the company's operations and market demand for its solid-state batteries [1][2][3]. Group 1: Tariff Impact - The Trump administration plans to introduce a new 25% tariff on foreign semiconductors, automobiles, and pharmaceuticals, which is expected to take effect on April 2 [3]. - The new tariffs could increase the cost of chips essential for developing QuantumScape's solid-state batteries, potentially leading to lower demand from its primary customer, Volkswagen [4]. - Reciprocal tariffs from other countries may also pose additional challenges for QuantumScape [4][5]. Group 2: Business Outlook - QuantumScape is still in a pre-revenue state, and rising expenses due to tariffs could make investors more sensitive in the short term [6]. - Despite the tariff situation, the long-term outlook for QuantumScape's battery technology commercialization remains largely unchanged [6]. - The company's stock presents a binary outcome for long-term investors: successful commercialization of its technology could lead to significant price increases, while failure could result in a substantial decline [7].

Core Viewpoint - The announcement of solid-state batteries by QuantumScape has positively impacted its stock price, reflecting investor confidence in the future of electric vehicle technology [1][3]. Group 1: QuantumScape Developments - QuantumScape's shares have increased by 6.3% following the news of its solid-state battery plans [1]. - The company is set to begin a demonstration phase with an unnamed prospective customer in 2026, indicating progress in its manufacturing processes [4]. - Significant advancements have been made in validating its technology and large-scale manufacturing capabilities, making it an attractive option for speculative investors [5]. Group 2: Industry Context - BYD, the world's largest EV manufacturer, plans to launch its first vehicles powered by solid-state batteries in 2027, with production ramping up in 2030 after a demonstration phase [2][3]. - The bullish outlook from BYD on solid-state battery technology enhances investor confidence in QuantumScape, as the technology's widespread application remains speculative [3].

Group 1 - QuantumScape Corporation (QS) is part of the Auto-Tires-Trucks sector, which ranks 10 in the Zacks Sector Rank, indicating a competitive position within the industry [2] - The Zacks Rank system, which favors stocks with improving earnings outlooks, currently rates QuantumScape Corporation at 2 (Buy) [3] - Over the past 90 days, the Zacks Consensus Estimate for QS' full-year earnings has increased by 7.2%, reflecting improved analyst sentiment [4] Group 2 - Year-to-date, QuantumScape Corporation has returned 0.8%, while the average return for Auto-Tires-Trucks stocks has been a loss of 6.5%, demonstrating QS's outperformance [4] - QuantumScape is categorized under the Automotive - Original Equipment industry, which has an average gain of 9% this year, indicating that QS is slightly underperforming its industry [6] - Another stock in the Auto-Tires-Trucks sector, XPeng Inc. Sponsored ADR (XPEV), has seen a significant year-to-date increase of 41% and has a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - Despite recent challenges, there are optimistic prospects for electric vehicle (EV) stocks, driven by increasing sales and consumer interest in EV options [1] Group 1: Rivian - Rivian has established a strong reputation for producing rugged EVs, achieving high owner satisfaction ratings [2] - The company is expanding its product lineup with pre-orders for a smaller SUV, the R2, set for delivery in early 2026, and a smaller crossover model, the R3, to follow [3] - Rivian's vehicle production is expected to remain flat this year, with a reported loss of $1.1 billion in the most recent quarter, although losses are narrowing due to production reengineering [4] - The company is on track to report its first positive gross profit in the upcoming fourth-quarter results [4] - With new vehicles, narrowing losses, and a joint venture with Volkswagen potentially worth up to $5.8 billion, Rivian is positioned for future growth [3][5] Group 2: QuantumScape - QuantumScape specializes in advanced lithium metal batteries that could outperform current EV batteries, offering faster charging and improved range [6] - The company has sent samples of its latest battery, the QSE-5, to potential customers but has yet to generate any revenue from battery sales [7] - A collaboration with Volkswagen's PowerCo could lead to mass production of QuantumScape's batteries, potentially generating royalties and a $130 million payment [8] - QuantumScape has sufficient cash runway to sustain operations until 2028, but it currently lacks sales and may take time to generate revenue [9][10] Group 3: Investment Perspective - Rivian is actively selling products and moving towards gross profitability, making it a more attractive investment compared to QuantumScape, which is still in the speculative phase [11]

Core Viewpoint - QuantumScape's stock surged following the release of its fourth-quarter results, which showed a smaller-than-expected loss and provided optimistic guidance for 2025 [1][2]. Financial Performance - The company reported a loss of $0.22 per share in the fourth quarter, which was better than the Wall Street analyst estimate of $0.24 per share [2]. - The net loss for the fourth quarter was $114.7 million, contributing to a total net loss of $477.9 million for the full year [3]. - Capital expenditures for the fourth quarter were $11.2 million, totaling $61.2 million for the entire year [2]. Financial Position - QuantumScape ended the year with approximately $140.9 million in cash and equivalents, along with about $769.9 million in marketable securities, providing sufficient financial flexibility for operations without needing to sell new stock [3]. Management Guidance - The management's guidance for 2025 was highlighted as a significant positive indicator, suggesting effective cost management [4]. - The company plans to begin baseline production for its Cobra solid-state battery separator equipment and expand manufacturing capacity within the year [6]. Product Development and Market Potential - QuantumScape is still in the development phase of its solid-state battery and has not yet generated revenue from its core business [5]. - If the solid-state batteries meet their potential, they could significantly enhance charging rates, charge capacity, and safety for electric vehicles, leading to substantial stock returns [5]. - The company anticipates shipping samples of its QSE-5 B1 battery this year, with a potential launch through an automaker in 2026 [6]. Customer Relationships - There is speculation that Volkswagen could be a potential customer for QuantumScape, which may lead to commercial sales of its batteries next year [7].

Financial Data and Key Metrics Changes - Capital expenditures (CapEx) in Q4 2024 were $11.2 million, and for the full year 2024, they totaled $62.1 million, which was within guidance [21] - GAAP operating expenses in Q4 were $128.7 million, and the GAAP net loss was $114.7 million; for the full year 2024, operating expenses were $525.2 million, and net loss was $477.9 million [22] - Adjusted EBITDA loss was $64.7 million in Q4 and $285 million for the full year 2024, both within guidance [22] - For 2025, the forecasted CapEx is between $45 million and $75 million, with an adjusted EBITDA loss expected to be between $250 million and $280 million [23] Business Line Data and Key Metrics Changes - The company achieved low-volume B0 production of QSE-5 cells with an energy density of 844 watt hours per liter, capable of fast charging in about 12 minutes [6] - The transition from Raptor to Cobra separator processes is expected to enable higher-volume B1 sample production in 2025 [9][11] Market Data and Key Metrics Changes - The company is actively discussing licensing arrangements with two automotive OEMs, indicating ongoing engagement in the electric vehicle market [29] - The partnership with PowerCo is seen as a blueprint for expanding licensing across the electric vehicle and energy storage industries [14] Company Strategy and Development Direction - The company aims to industrialize the QSE-5 technology platform for electric vehicles, targeting gigawatt-hour scale production [8] - The focus for 2025 includes bringing Cobra into baseline production, installing higher-volume cell production equipment, and shipping QSE-5 B1 samples for customer testing [13][19] - The strategic outlook emphasizes revolutionizing the electric vehicle and energy storage industries through a capital-light licensing model [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of electrification in transportation, despite current uncertainties in EV policies [44] - The company is optimistic about the engagement with customers, noting robust discussions and technical diligence [45] Other Important Information - The company ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028 [23] - The partnership with PowerCo involves a joint team of over 150 experts working on industrializing the QSE-5 technology [7][49] Q&A Session Summary Question: What are the plans for PowerCo and the QSE-5 launch customer? - Management stated that B1 samples will support the demonstration phase targeted for 2026, while maintaining customer confidentiality [26] Question: Can you provide updates on the partnership with PowerCo? - Management confirmed ongoing collaboration and industrialization processes, with both companies working closely together [55] Question: What performance improvements are expected from B1 cells compared to B0 cells? - Management highlighted that B0 cells already demonstrated excellent performance, and the focus is on industrializing the production process for B1 samples [57] Question: What is the expected scale for the prospective launch customer? - Management indicated that B1 samples will directly support the launch customer's demo program, with performance already proven [64] Question: Is there any appetite for discussions with Chinese OEMs? - Management refrained from discussing specific OEM partners but noted existing relationships with a diverse range of automotive OEMs [69] Question: Have any competitors challenged the company's IP? - Management expressed confidence in their technology, stating that no other company consistently reports data matching their standards [75]

This presentation contains "forward-looking statements" within the meaning of the federal securities laws based on management's current expectations as of the date of this presentation. All statements, other than historical facts, including those about the Company's battery technology, benefits, performance, goals, operations, cash usage, spending, and investment, are forward-looking statements. Words like "may," "will," "can," "estimate," "when," "aim," "pro forma," "expect," "plan," "believe," "confident, ...

Exhibit 99.1 Q4 fiscal 2024 letter to shareholders February 12, 2025 Dear shareholders, Our baseline currently uses the Raptor separator process for B0 cell production. The baseline has significantly improved yield and reliability as we have learned and refined the various sub-components of the process. Raptor in particular has demonstrated much improved separator quality and process stability, and will serve as the workhorse in separator production while we prepare to transition to Cobra. Cobra represents ...

Could QuantumScape stock be the next multi-bagger?In today's video, I discuss QuantumScape (QS 0.40%), its business strategy, growth opportunities, potential risks, and why artificial intelligence stock investors should not ignore this semiconductor stock.*Stock prices used were the market prices of February 6, 2025. The video was published on February 7, 2025. ...