QuantumScape (NYSE:QS) stock dipped as much as 5% in after-market trading on Feb. 14 after the company released its fourth-quarter earnings. The firm reported losses per share of 23 cents, a slight improvement over analysts’ prediction for a loss of 34 cents, and outlined plans for 2024.
As expected, the Silicon Valley-based company did not generate revenue in the quarter. Wall Street analysts do not expect the startup to generate meaningful sales until at least 2026. Meanwhile, cost-cutting measures previously announced in December helped narrow losses per share by 2 cents compared to the previous year.
In a letter addressed to shareholders, QuantumScape CEO Jagdeep Singh reassured investors of his firm’s progress in creating more efficient batteries. He noted that his firm entered 2023 having just shipped its first A0 prototype cells to customers, and that QuantumScape expects to ship its Alpha-2 sample later this year. Management also hopes to begin low-volume production of its first commercial cell, QSE-5.
Nevertheless, investors have become increasingly concerned over QuantumScape’s ability to deliver on its promises. Shares of the battery startup have fallen 35% over the past year, and competition from innovative Chinese firms is potentially making QuantumScape’s path to profitability more difficult. A glut of electric vehicle supply has also impacted demand for lithium metal and batteries; prices of lithium on Chinese exchanges have fallen a stunning 83% over the past year.
Looking ahead, QuantumScape expects capital expenditure to range between $70 million to $120 million, roughly the same as in 2023. The company also expects its adjusted EBITDA to fall between a loss of $250 million and a loss of $300 million,
On the date of publication, Thomas Yeung did not have (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.
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