Shares of QuantumScape (QS +0.14%) closed lower today as the development-stage quantum-battery stock reported first-quarter results this morning. Investors seemed to want to see faster progress in the company's battery-cell development.
As a result, QuantumScape stock closed the session down 6.9%.
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QuantumScape still needs time
QuantumScape still has no revenue, and its operating expenses increased modestly in the quarter from $110 million a year ago to $131.9 million.
Capital expenditures were just $14.1 million, down from $28 million in the quarter a year ago, and its per-share loss of $0.24 was worse than expectations at $0.21.
QuantumScape said it had achieved the first of its four goals for 2024, which it previously announced, shipping its six-layer, Alpha-2 prototype battery cells to its automotive customers, and called it a key deliverable for its prospective launch customer.
The company still aims to begin low-volume QSE-5 prototype production, ramp its Raptor process, and prepare for Cobra production in 2025.
With no major news to share, investors seemed to shrug off the quarterly report.
NASDAQ: QS
Key Data Points
What's next for QuantumScape
QuantumScape reported earnings this morning, but its earnings call was scheduled for after-market hours at 5 p.m. ET, meaning that the stock could move tomorrow if management shares anything material on the call.
The electric vehicle (EV) battery stock has gradually drifted lower as investor expectations have cooled down following a promising initial public offering (IPO), and revenue expectations are still modest, with analysts calling for $6.5 million in revenue next year.
The company has $1 billion in cash, cash equivalents, and marketable securities, which should give it a decent runway for product development. Based on its free-cash-flow loss or cash burn of $71 million in the quarter, the company can afford to fund the business for roughly 3.5 years.
Investors are hoping it will have a viable business by then as it ramps up battery-cell production in the coming years.
