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Sep 30, 2022
QuantumScape Q3 2022 Earnings Report
Reported progress in reducing contaminants and advancing A-sample development, while also highlighting customer engagement and financial outlook.
Key Takeaways
QuantumScape reported progress in reducing contaminants in their material, which allowed them to freeze major design parameters for their separator film and cell. They have kicked off their 24-layer A-sample campaign and are ramping up separator film production. They are engaged with leading global consumer electronics companies and have shipped dozens of zero externally applied pressure single-layer pouch cells for customer testing. They reiterated their cash opex guidance of $225M to $275M for FY’22 and expect to be on the lower end of their capital expenditure guidance of $175M to $225M.
Dramatically reduced contaminant levels in films and integrated process improvements.
Kicked off 24-layer A-sample campaign and froze major design parameters.
Shipped dozens of zero externally applied pressure single-layer pouch cells for consumer electronics customer testing.
Reiterated cash opex guidance of $225M to $275M for FY’22 and expect to be on the lower end of their capital expenditure guidance of $175M to $225M.
QuantumScape
QuantumScape
Forward Guidance
QuantumScape provided financial guidance, reiterating their cash operating expense guidance of $225M to $275M for FY'22 and expecting to be on the lower end of their capital expenditure guidance of $175M to $225M. Based on these projections, they believe they will enter 2023 with more than $1B in liquidity.
Positive Outlook
- Expect to be on the lower end of capital expenditure guidance of $175M to $225M.
- Believe they will enter 2023 with more than $1B in liquidity.
- Significant government investment into domestic clean energy manufacturing and supply chains with the passage of the Inflation Reduction Act (IRA).
- QS-0 line equipment needed for early production will mostly be delivered by the end of the year.
- Committed to bringing vehicles equipped with solid-state lithium-metal battery technology to market as early as practicable.
Challenges Ahead
- Macroeconomics headwinds.
- Geopolitical disruptions.
- Significant barriers in attempts to produce a solid-state battery cell.
- Could encounter significant delays and/or technical challenges in replicating the performance seen in its single-layer and early multilayer cells.
- 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.