Shares of QuantumScape (NYSE:QS) are falling lower by more than 10% after the solid-state battery (SSB) maker reported its fourth-quarter earnings. This comes after QS stock closed higher by over 30% the previous trading day, which may have been attributed to the White House announcing funding for electric vehicle (EV) charging infrastructure or shorts covering ahead of earnings.
For Q4, QuantumScape reported zero dollars in sales and an earnings per share (EPS) loss of 25 cents, which beat the average analyst estimate for a loss of 29 cents. That’s equivalent to a loss of $109 million, up from a loss of $67 million a year ago.
Zero revenue was not surprising, as the company doesn’t expect to test out its SSBs on EV platforms until 2026. However, 2026 is way out in the future, and a major investor is now growing inpatient. Let’s get into the details.
Khosla Ventures Cuts QS Stock Stake
As of December 31, Khosla Ventures reported owning 24.83 million shares, equivalent to a 6.6% ownership stake. According to Fintel, the venture capital firm last reported owning 35.44 million shares, which means that it sold 10.61 million shares since the last update. Khosla itself has not provided commentary for the reduction, although QuantumScape has fallen by more than 40% during the past year.
As of Q4, 320 13F filers disclosed a stake in QS, up from 306 filers during Q3. In total, these filers own 126.12 million shares, up from 113.78 million shares. Meanwhile, the institutional put/call ratio sits at a low 0.65, down from 1.09. That’s equivalent to 7.36 million puts and 11.3 million calls, implying a bullish options stance.
For QuantumScape, progress continues to steadily trend up. During 2022, the company completed its goal of shipping out the first 24-layer A0 prototype battery cells to customers. QuantumScape explained, “While specific customer testing protocols and results can’t be disclosed, we can report that generally, most cells have performed well on initial testing, including fast charge and early-cycle capacity retention.”
Last year, QuantumScape also signed sampling agreements with three more automakers. The company began shipping out 24-layer A0 sample cells to some automakers last December.
For 2023, QuantumScape forecasts capital expenditures between $100 million and $150 million and cash operating expenses between $225 million and $275 million. In addition, QuantumScape has enough cash to sustain operations until Q2 of 2025, compared to previous estimates of Q4 of 2024.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.