Shares of QuantumScape (NYSE:QS) closed lower today after development-stage quantum battery stocks 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%.
QuantumScape still needs time
QuantumScape still has no revenue and operating expenses rose modestly in the quarter, to $131.9 million from $110 million a year ago.
Capital expenditures were just $14.1 million, compared to $28 million in the year-ago quarter, and loss per share of $0.24 was worse than expected at $0.21.
QuantumScape said it achieved the first of its four 2024 goals, which it previously announced, by shipping its six-layer Alpha-2 prototype battery cells to its automotive customers, calling this a key achievement for its potential launch customer.
The company still aims to begin production of QSE-5 prototypes in small volumes, ramp up the Raptor process and prepare for Cobra production in 2025.
With no major news to share, investors seemed to shrug off the quarterly report.
What’s next for QuantumScape?
QuantumScape reported earnings this morning, but the earnings call was scheduled for after-hours at 5:00 PM ET, meaning the stock could be on the move tomorrow if management shares anything substantive on the call.
Electric vehicle (EV) battery stocks have been gradually declining as investor expectations have cooled following a promising initial public offering (IPO), and revenue expectations remain modest, with analysts expecting $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 the $71 million loss of free cash flow or cash burn in the quarter, the company can afford to finance the business for about 3.5 years.
Investors hope it will have a viable business by then as it ramps up battery cell production in the coming years.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why QuantumScape Stock Lost 7% Today was originally published by The Motley Fool
