The short answer is no, but the more important question is how long will it be before investing in QuantumScape pays off? QuantumScape (QS -1.69%) stock is up 6% over the past six months, but down 34% from its high-water mark over that span. This is a volatile stock, to put it mildly, noting that the shares have fallen around 95% from their all-time highs, reached in late 2020. Is it too late to invest in QuantumScape? Probably not. But this is not an investment for the faint of heart. What does QuantumScap ...

The battery technology company isn't exactly a low-risk stock, but it could be transformative to the EV industry. QuantumScape (QS -4.99%) is perhaps the ultimate example of a binary outcome stock. If its new battery technology proves successful on the commercial level, it could transform the electric vehicle (EV) industry and make its investors lots of money in the process. But that's a big "if." In this video, Fool.com contributors Matt Frankel and John Rosevear discuss QuantumScape's latest developments ...

Core Viewpoint - Recent insider activity at QuantumScape has raised investor speculation regarding the company's future prospects, necessitating a reassessment of stock positions [1] Group 1: Technology and Innovation - QuantumScape's solid-state battery technology has the potential to revolutionize the electric vehicle (EV) industry by overcoming limitations of traditional lithium-ion batteries, offering reduced costs, faster charging times, extended range, and enhanced safety [2][4] - The company's anode-free lithium-metal technology could enable EVs to achieve a range of up to 600 miles on a single charge and recharge to 80% capacity in just 15 minutes [2] Group 2: Strategic Partnerships and Progress - QuantumScape has formed a significant partnership with Volkswagen, which has invested in the company and tested its solid-state battery technology, passing critical endurance tests [6] - A licensing agreement with Volkswagen's battery unit, PowerCo, includes a $130 million royalty prepayment, targeting an initial production volume of 40 gigawatt hours per year, with potential to double this capacity, enough to power one million vehicles annually [7] - The delivery of Alpha-2 prototype cells marks a significant step toward bringing solid-state batteries to market, with plans for the QSE-5 to be the first mass-market offering [8] Group 3: Challenges and Market Position - Despite advancements, QuantumScape faces significant challenges in commercializing solid-state batteries, including technical and logistical hurdles, and must prove its ability to scale production efficiently [11] - The company is still at least a year away from commercialization, with competitors like SES AI and Solid Power also making strides in solid-state battery technology [12] - QuantumScape reported a net loss of $123 million in Q2 2024, with liquidity of $938 million, but high capital expenditures and R&D costs may impact future margins [14] Group 4: Financial Outlook - The Zacks Consensus Estimate for QuantumScape's 2024 loss per share has widened to 91 cents, indicating a year-over-year improvement of 5.2% [16] - Year-to-date, QS shares have declined 18.6%, underperforming its peer group, and the stock currently carries a Value Score of F, with missed earnings estimates in three of the last four quarters [14][15]

QuantumScape stock has plummeted over the past three years, but is it time for investors to walk away? QuantumScape's (QS 1.50%) solid-state battery technology could relieve a slew of problems or hindrances for electric vehicles (EVs), among other industries. Solid-state EV batteries would lower costs, increase range, and improve safety -- three critical components of whether consumers decide to buy an EV. But the shine has worn off QuantumScape, with the stock 72% lower over the past three years, and even ...

QuantumScape Today QS QuantumScape $6.00 -0.10 (-1.64%) 52-Week Range $4.67 ▼ $10.03 Price Target $6.62 Add to Watchlist After 13 years, QuantumScape Co. NYSE: QS is getting closer to the launch of its first commercial solid-state lithium-metal (SSLM) battery. Its announcement of the extended production agreement with Volkswagen AG (OTCMKTS: VWAGY) subsidiary PowerCo sent shares rocketing over 40% up to $9.52 on July 17, 2024. Shares have since pulled back down to complete the gap-fill at $5.45, and it's ge ...

It's made amazing progress. But it's still not making batteries to sell. In this video, Motley Fool contributors Jason Hall and Tyler Crowe discuss the latest with QuantumScape (QS -1.89%), its partnership with Volkswagen (VWAGY 1.18%), and what investors need to know right now. *Stock prices used were from the afternoon of Aug. 14, 2024. The video was published on Aug. 16, 2024. ...

Core Viewpoint - QuantumScape is advancing its solid-state battery technology, which is crucial for the future of electric vehicles (EVs), but it remains in the pre-revenue stage and faces significant competition and challenges ahead [2][10]. Group 1: Company Overview - QuantumScape is focused on developing next-generation solid-state lithium batteries for EVs, aiming to improve energy density, charging speed, and safety [5]. - The company went public in November 2020, initially seeing its stock price soar to $132 per share due to investor enthusiasm for EV technology [4]. - QuantumScape has a significant partnership with Volkswagen, which has invested nearly $300 million and formed a joint venture to help scale production [7]. Group 2: Technological Developments - The company is working to address the limited driving range of current EVs, targeting a minimum of 300 miles per charge to compete with traditional vehicles [5]. - QuantumScape's solid-state battery recently passed an endurance test, completing over 1,000 charging cycles and demonstrating the potential for over 500,000 kilometers of driving without significant range loss [7]. Group 3: Financial Position - QuantumScape is currently pre-revenue, with a net loss of $468 million over the past 12 months, indicating ongoing financial challenges as it develops its technology [7]. - A recent agreement with Volkswagen's PowerCo allows for the mass production of QuantumScape's batteries, with a capacity of up to 40 gigawatt hours per year, potentially powering one million vehicles annually [8]. - The deal includes a $130 million prepayment of royalties, extending QuantumScape's cash runway by 18 months into 2028 [9]. Group 4: Market Position and Competition - QuantumScape faces competition from other battery developers, including major players like Toyota and Nio, which may impact its market position [10]. - The stock is characterized as high-risk and high-reward, suitable for investors with a high tolerance for risk and a long investment horizon [10].

Core Insights - QuantumScape is addressing key challenges hindering electric vehicle (EV) sales growth, including range anxiety, charging times, and battery safety [1][3] - The potential market for QuantumScape's solid-state battery technology is significant, as it could alleviate concerns among potential EV buyers [2][3] - The company is on a transitional path in 2024, with plans to introduce its first commercial product and scale up manufacturing processes [4] Company Developments - QuantumScape's solid-state lithium-metal battery technology offers advantages over conventional lithium-ion batteries, such as nonflammable electrolytes, fast charging in approximately 15 minutes, improved battery cycle life, and lower manufacturing costs [4] - The company has a two-stage plan for mass production, currently ramping up the "Raptor" process for low-volume prototypes and preparing for the "Cobra" stage in 2025 [4][8] - A recent partnership with PowerCo, Volkswagen's battery division, is expected to support QuantumScape's EV technology growth and extend its cash balance into 2028 [6][7] Financial Outlook - The capital-light approach from the new agreement with PowerCo is projected to extend QuantumScape's cash runway by about 18 months compared to previous estimates [7] - The partnership sets a framework for mass production that can be utilized with other customers, as the licensing is non-exclusive [7] - Despite the advantages of the new agreement, the company remains speculative, with significant risks associated with achieving production at scale [10]

Core Viewpoint - QuantumScape Corporation (NYSE:QS) is rated as a buy due to its potential upside if it successfully delivers its solid-state battery products, with recent progress in R&D, manufacturing, and a positive licensing deal with PowerCo strengthening its financial position [4][18]. Business Description - QuantumScape designs and manufactures solid-state lithium-ion batteries for electric vehicles, offering advantages such as enhanced safety, faster charging, and higher energy density compared to traditional batteries [5]. - As of Q2 2024, QuantumScape is not generating revenue and reported an operating loss of $134 million and an EBITDA loss of $72.5 million, indicating it is still in the R&D phase and experiencing cash burn [5]. Positive on Licensing Deal - The licensing agreement with PowerCo includes a $130 million royalty pre-payment, which alleviates financial pressure and extends QuantumScape's cash runway significantly [6]. - This deal also transitions QuantumScape to a more asset-light operating model, potentially leading to higher free cash flow in the future [6]. R&D and Manufacturing Process on Track - QuantumScape's R&D and manufacturing processes are reportedly on track, with robust customer engagements and successful prototype shipments to various sectors [8]. - The prototype testing has shown promising thermal stability, with tests indicating stability up to 300 degrees Celsius, which is significantly higher than conventional lithium-ion cells [8]. Key Milestones and Financial Outlook - A critical milestone is the successful production of a B-sample by the end of 2024, which would indicate the viability of the Cobra manufacturing process [10]. - QuantumScape's balance sheet is projected to sustain operations until it begins generating meaningful revenue, with total cash and equivalents estimated at around $1.2 billion post-PowerCo deal [12]. Valuation - Forecasting revenue is challenging due to the lack of historical data, but management initially expected revenue generation in FY24 and positive EBITDA by FY27. Current projections suggest a delay, with high-volume production not expected until FY25 [14]. - Assuming QuantumScape achieves an EBITDA target of approximately $1.6 billion by 2030, the enterprise value could reach around $19.5 billion, translating to a target share price of approximately $39 [16].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) | Delaware | 85-0796578 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identificatio ...