QuantumScape Q3 2023 Earnings Report
Key Takeaways
QuantumScape reported progress in customer prototype testing, highlighting a top-performing A0 prototype cell achieving over 1,000 full cycle equivalents with over 95% discharge energy retention. The company is focused on QSE-5 development and collaborating with a prospective automotive launch customer. They ended Q3 with over $1.1B in liquidity and forecast their cash runway will extend into 2026.
Top-performing A0 prototype cell achieved over 1,000 full cycle equivalents with over 95% discharge energy retention.
Collaborating with a prospective launch customer in the automotive sector for QSE-5.
Entered into a technology evaluation agreement with a leading global consumer electronics player.
Process qualification of Raptor equipment began on schedule.
QuantumScape
QuantumScape
Forward Guidance
QuantumScape maintains its full-year 2023 guidance on cash operating expenses of $225M to $275M and revises its capex guidance to $75M to $100M. The company continues to target low-volume B samples in 2024 off our Raptor process and higher-volume B samples in 2025 off our Cobra process. They now forecast that their cash runway will extend into 2026.
Positive Outlook
- Targeting low-volume B samples in 2024 off Raptor process.
- Targeting higher-volume B samples in 2025 off Cobra process.
- Cash runway extended into 2026.
- Focus on process and defect control.
- Focus on equipment and data automation.
Challenges Ahead
- Significant challenges remain in producing cells in large volumes with high quality and reliability.
- The company faces significant challenges in its attempts to develop a solid-state battery cell and produce it at high volumes.
- The Company could encounter significant delays and/or technical challenges in replicating the performance seen in its single-layer and early multilayer cells.
- The Company has encountered delays and other obstacles in acquiring, installing and operating new manufacturing equipment for automated and/or continuous-flow processes.
- Delays or difficulties in meeting technical milestones or scaling up QS-0 could cause prospective customers and joint venture partners not to purchase cells from our pre-production line or not to proceed with a manufacturing joint venture.