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QuantumScape (QS)
NYSE:QS
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QuantumScape (QS) AI Stock Analysis

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QS

QuantumScape

(NYSE:QS)

Rating:46Neutral
Price Target:
QuantumScape's stock is hindered by significant financial challenges, including no revenue and high net losses. Despite a strong balance sheet, ongoing cash burn and the need for external funding pose risks. The earnings call highlighted strategic progress, offering some optimism, but high expenses and uncertain customer engagements weigh on the outlook. Technicals indicate bearish trends, and valuation metrics are unfavorable due to lack of profitability.
Positive Factors
Manufacturing Process
Implementing the Cobra manufacturing process into production of B1 samples is a significant improvement necessary to achieve scale economics.
Partnership and Collaboration
QuantumScape's agreement with Murata could be fruitful for scaling the ceramic separator material, leveraging Murata's industry expertise.
Technology Validation
QuantumScape continues to receive validation of its technology roadmap and development work as customer engagements continue to expand, underscored by PowerCo and now Murata.
Negative Factors
Competition and Market Risks
Investor risks include technology risk with QuantumScape's solid separator, scaling risks, timeline shifts in manufacturing, and competition risks from other next-generation technologies.
Stock Reaction History
Previous reactions to press releases resulted in significant stock increases, which later faded back to prior levels.
Stock Volatility
The steep move in the stock is considered overdone as implementing Cobra was a known milestone and not a surprise to investors.

QuantumScape (QS) vs. SPDR S&P 500 ETF (SPY)

QuantumScape Business Overview & Revenue Model

Company DescriptionQuantumScape Corporation is an American company in the automotive sector, primarily focused on the development and commercialization of solid-state lithium-metal batteries for electric vehicles. Founded in 2010 and headquartered in San Jose, California, QuantumScape aims to revolutionize energy storage with its innovative battery technology, which promises higher energy density, faster charging times, and improved safety compared to traditional lithium-ion batteries.
How the Company Makes MoneyQuantumScape makes money through the development and future commercialization of its solid-state battery technology. The company aims to license its technology and establish partnerships with major automotive manufacturers to integrate its batteries into electric vehicles. Revenue is expected to be generated through these strategic partnerships and potential joint ventures. Additionally, QuantumScape may also explore direct sales of its battery products once they are commercially viable. Significant partnerships, such as the one with Volkswagen Group, play a crucial role in QuantumScape's business model by providing financial support and a pathway to market entry for their cutting-edge battery solutions.

QuantumScape Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -6.70%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant advancements in collaboration and technology development, particularly with the expanded PowerCo deal and new joint development agreement with a global OEM. However, financial challenges persist with continued losses and high expected capital expenditures.
Q2-2025 Updates
Positive Updates
Expanded Collaboration with Volkswagen's PowerCo
QuantumScape announced an expansion of its collaboration with Volkswagen's battery maker, PowerCo, which includes additional payments of up to $131 million over the next two years to support commercialization activities. This is in addition to the previously announced $130 million due upon satisfactory technical progress.
New Joint Development Agreement
QuantumScape entered into a joint development agreement with another major global automotive OEM, indicating strengthened collaboration beyond initial sampling agreements.
Cobra Process Implementation
The Cobra process, which replaced the Raptor process, has significantly improved separator production efficiency, enabling B1 sample shipments this year and enhancing productivity by more than 200 times.
Extended Cash Runway
QuantumScape extended its cash runway forecast into 2029, a six-month improvement over previous guidance, primarily due to the expanded PowerCo deal.
Negative Updates
Continued Financial Losses
QuantumScape reported GAAP operating expenses of $123.6 million and a GAAP net loss of $114.7 million for Q2. Adjusted EBITDA loss was $63 million.
High Capital Expenditures Expected
For the second half of 2025, higher levels of capital expenditures are expected compared to the first half, with full-year guidance narrowed to between $45 million and $65 million.
Company Guidance
During QuantumScape's Second Quarter 2025 earnings call, the company highlighted significant advancements and strategic partnerships, emphasizing their expanded collaboration with Volkswagen Group's PowerCo. This upgraded agreement involves additional payments of up to $131 million over the next two years, contingent upon achieving specific milestones, with the first set of milestones already linked to over $10 million in expected payments. The deal allows PowerCo to produce up to 85 gigawatt-hours of QuantumScape cells annually, reinforcing the value of QuantumScape's solid-state lithium metal technology in the automotive sector. Additionally, QuantumScape extended its cash runway into 2029, improving by six months from previous guidance. The call also discussed the company's new joint development agreement with another major global automotive OEM, aligning with their strategic plan to commercialize and license their technology. Financially, QuantumScape reported a GAAP net loss of $114.7 million and adjusted EBITDA loss of $63 million for Q2, with capital expenditures amounting to $8.3 million, and revised their full-year guidance for adjusted EBITDA loss to between $250 million and $270 million.

QuantumScape Financial Statement Overview

Summary
QuantumScape faces significant financial challenges with no revenue generation, large net losses, and ongoing cash burn. While the balance sheet is strong due to high equity and low leverage, the lack of revenue and continued losses are concerning. Cash flow is negative and reliant on external funding, adding sustainability risks.
Income Statement
20
Very Negative
QuantumScape has consistently reported zero revenue over multiple years, indicating a lack of commercialized product sales. The company experiences high net losses, with increasing EBIT and EBITDA losses year over year, highlighting operational challenges. The absence of revenue growth is a significant concern.
Balance Sheet
65
Positive
QuantumScape maintains a strong equity position with a high equity ratio, indicating a stable financial foundation. The company's low debt-to-equity ratio suggests limited leverage, reducing financial risk. However, the consistent net losses are eroding equity over time, which is a potential long-term concern.
Cash Flow
50
Neutral
The company has a negative free cash flow, which has shown some variability without a clear trend of improvement. Operating cash flow is consistently negative, indicating ongoing cash burn. The reliance on financing activities to cover cash flow deficits poses sustainability risks if external funding becomes less accessible.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-57.78M-41.96M-36.12M-14.70M-8.08M
EBITDA-525.21M-400.74M-373.37M-29.86M-1.65B
Net Income-477.86M-445.14M-403.19M-47.54M-121.45M
Balance Sheet
Total Assets1.32B1.50B1.48B1.72B1.07B
Cash, Cash Equivalents and Short-Term Investments910.77M1.07B1.06B1.45B997.55M
Total Debt93.54M100.63M105.42M77.37M12.46M
Total Liabilities164.55M161.80M155.86M107.06M23.59M
Stockholders Equity1.16B1.34B1.32B1.61B1.04B
Cash Flow
Free Cash Flow-336.69M-324.54M-376.87M-255.09M-85.36M
Operating Cash Flow-274.56M-240.03M-218.02M-127.91M-61.26M
Investing Cash Flow128.87M-152.53M124.12M-385.83M-802.65M
Financing Cash Flow144.03M300.21M8.60M736.56M953.72M

QuantumScape Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.97
Price Trends
50DMA
6.62
Positive
100DMA
5.37
Positive
200DMA
5.29
Positive
Market Momentum
MACD
2.00
Negative
RSI
62.85
Neutral
STOCH
53.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QS, the sentiment is Positive. The current price of 11.97 is above the 20-day moving average (MA) of 9.98, above the 50-day MA of 6.62, and above the 200-day MA of 5.29, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QS.

QuantumScape Risk Analysis

QuantumScape disclosed 52 risk factors in its most recent earnings report. QuantumScape reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

QuantumScape Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$387.98M-65.19%28.52%41.32%
59
Neutral
$2.89B-0.30%23.48%97.67%
57
Neutral
HK$26.40B4.11-2.03%5.49%-0.23%-68.02%
54
Neutral
$443.89M-31.45%-79.83%
47
Neutral
$1.30B-113.70%95.90%10.38%
46
Neutral
$7.06B-42.03%6.49%
44
Neutral
$168.00M146.24%-3.84%67.67%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QS
QuantumScape
11.97
4.93
70.03%
LAZR
Luminar Technologies
3.20
-22.15
-87.38%
AEVA
Aeva Technologies
21.49
17.83
487.16%
INVZ
Innoviz Technologies
1.92
1.07
125.88%
SES
SES AI Corporation Class A
1.18
-0.06
-4.84%
HSAI
Hesai Group Sponsored ADR
21.30
16.72
365.07%

QuantumScape Corporate Events

Executive/Board Changes
QuantumScape Appoints New Board Members and Chairman
Neutral
Oct 23, 2024

QuantumScape Corporation has announced the appointment of Dennis Segers and Dr. Günther Mendl to its Board of Directors. Segers, a veteran in the semiconductor industry, will also serve as Chairman starting January 1, 2025, succeeding Jagdeep Singh, who is retiring. Dr. Mendl, who has extensive experience in battery technology, joins as a representative of Volkswagen Group. Both directors are part of the company’s standard compensation program, though Dr. Mendl has waived his compensation rights.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025