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Sep 30, 2024
QuantumScape Q3 2024 Earnings Report
Began producing low volumes of first B-sample cells and shipping them for automative customer testing.
Key Takeaways
QuantumScape has started producing low volumes of its first B-sample cells (QSE-5) and shipping them for automotive customer testing, achieving a key 2024 goal. They have also signed an agreement with PowerCo to bring QSE-5 technology into mass production. The company anticipates Cobra heat treatment equipment will be in place by the end of 2024.
Started producing low volumes of first B-sample cells and shipping them for automative customer testing.
Signed agreement with PowerCo for mass production of QSE-5 technology.
Raptor is now part of baseline production process.
Anticipate Cobra heat treatment equipment will be in place by the end of 2024.
QuantumScape
QuantumScape
Forward Guidance
QuantumScape has tightened its full-year forecast for Adjusted EBITDA loss to be between $280M and $300M. They are lowering their 2024 forecast for capital expenditures to be between $60M and $75M.
Positive Outlook
- Cash runway forecast extended by 18 months into 2028.
- PowerCo agreement released $134M previously earmarked for the joint venture.
- Includes a $130M royalty prepayment from PowerCo contingent on satisfactory technical progress.
- Tighten full-year forecast for Adjusted EBITDA loss to be between $280M and $300M
- Lowering 2024 forecast for capital expenditures to be between $60M and $75M.
Challenges Ahead
- Higher legal fees and settlement accruals in 2024 that we do not expect to reoccur in 2025.
- Face 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, early multilayer and low volume sample cells.
- May encounter delays and cost overruns in hiring and retaining the engineers it needs to expand its development and production efforts.
- Volkswagen relationship is subject to various risks which could adversely affect business and future prospects.