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Better Energy Stock: QuantumScape vs. NuScale Power
QSQuantumScape(QS) The Motley Fool·2024-12-17 09:35

Core Insights - QuantumScape and NuScale Power are both attempting to disrupt traditional energy sectors with innovative technologies, focusing on solid-state batteries and small modular reactors respectively [1] - QuantumScape's stock has significantly declined from its peak, while NuScale's stock has shown resilience and growth [2] QuantumScape Overview - QuantumScape is developing solid-state lithium-metal batteries that promise higher energy density and faster charging times compared to traditional lithium-ion batteries [3][4] - The company is not expected to generate revenue until 2026, with projected net losses of nearly 500millionannuallyfrom2024to2026[6]−QuantumScape′sproductionramp−upiscontingentonupgradingitsmanufacturingprocess,whichisexpectedtobecompletedby2025[5]−Thecompanyfacesintensecompetitionfromotherfirmsandestablishedautomakers,contributingtoasignificantdropinitsstockvalue[7]NuScalePowerOverview−NuScaleistheonlycompanywithsmallmodularreactors(SMRs)certifiedbytheU.S.NuclearRegulatoryCommission,allowingforeasierdeploymentinvariouslocations[8]−Thecompanyaimstoachievecost−effectivenessbydevelopingreactorclustersthatgenerateatleast77megawattsofelectricity,withcertificationexpectedin2025[10]−Despiteambitiousplans,NuScalehasfacedfinancialchallenges,leadingtolayoffsandthecancellationofareactorconstructionproject[11]−Recentdevelopments,includingnewsupplyagreementsandgovernmentfunding,havepositivelyimpactedNuScale′sstockperformance[12]FinancialProjections−AnalystspredictNuScale′srevenuewillremainflatat500 million annually from 2024 to 2026 [6] - QuantumScape's production ramp-up is contingent on upgrading its manufacturing process, which is expected to be completed by 2025 [5] - The company faces intense competition from other firms and established automakers, contributing to a significant drop in its stock value [7] NuScale Power Overview - NuScale is the only company with small modular reactors (SMRs) certified by the U.S. Nuclear Regulatory Commission, allowing for easier deployment in various locations [8] - The company aims to achieve cost-effectiveness by developing reactor clusters that generate at least 77 megawatts of electricity, with certification expected in 2025 [10] - Despite ambitious plans, NuScale has faced financial challenges, leading to layoffs and the cancellation of a reactor construction project [11] - Recent developments, including new supply agreements and government funding, have positively impacted NuScale's stock performance [12] Financial Projections - Analysts predict NuScale's revenue will remain flat at 23 million in 2024 but could surge to 102millionin2025,althoughitremainsunprofitable[13]−QuantumScape′senterprisevalueiscurrently102 million in 2025, although it remains unprofitable [13] - QuantumScape's enterprise value is currently 1.9 billion, while NuScale's is $2 billion, reflecting a high valuation relative to expected sales [7][13] Investment Outlook - NuScale is viewed as a more favorable investment due to its revenue generation, lower competition, and clearer growth catalysts compared to QuantumScape [14]