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Jun 30, 2024
QuantumScape Q2 2024 Earnings Report
QuantumScape announced a landmark agreement with PowerCo, extending its cash runway into 2028. The company is on track to complete the Raptor process ramp and made progress in preparing for B-sample production.
Key Takeaways
QuantumScape reported a net loss of $123.0 million for Q2 2024. The company announced a significant agreement with PowerCo, which is expected to extend the cash runway into 2028. They are progressing with their production milestones, including the Raptor process ramp and preparations for B-sample production.
Announced a landmark agreement with PowerCo for technology licensing and industrialization collaboration.
Forecasted cash runway extended into 2028 due to the PowerCo agreement.
Shipped Alpha-2 prototype cells to multiple customers in the automotive and consumer electronics sectors.
On track to complete the Raptor process ramp, showing encouraging benefits for separator quality.
QuantumScape
QuantumScape
Forward Guidance
QuantumScape maintains its full-year 2024 guidance for Adjusted EBITDA loss to be between $250M and $300M and expects to be on the lower end of its capital expenditure guidance range of $70M to $120M. The company now projects its cash runway to extend into 2028.
Positive Outlook
- Licensing deal with PowerCo offers a capital-efficient path to market.
- Deal expected to minimize the time to gigawatt-hour scale production.
- Potential to quadruple capacity relative to the previous joint venture arrangement.
- Extension of cash runway forecast mainly attributable to avoidance of planned spend on our joint venture.
- Improvements to capital and operational efficiency with respect to existing operations
Challenges Ahead
- Faces significant challenges in attempts to develop a solid-state battery cell and produce it at high volumes
- Could encounter significant delays and/or technical challenges in replicating and scaling up the performance seen in its single-layer and early multilayer cells
- May encounter delays and other obstacles in acquiring, installing and operating new manufacturing equipment for automated and/or continuous-flow processes such as Raptor and Cobra
- May encounter delays, difficulties and technical challenges in its collaboration with PowerCo to industrialize its solid-state lithium-metal battery technology
- May be unable to adequately control the costs associated with its operations and the components necessary to build its solid-state battery cells at competitive prices.