Shares of QuantumScape (QS -8.06%) were sliding today after the solid-state battery company posted another loss in its second quarter and demonstrated relatively modest progress in its goal of becoming a viable company and scaling production of quantum batteries, which are more efficient than lithium-ion electric batteries.
QuantumScape has no revenue as the company is a development-stage technology company that's still building its product, but investors want to see it managing its cash burn and making progress toward a viable product.
As of 10:49 a.m. ET, the stock was down 8.3% on the update.
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QuantumScape is still asking for patience
QuantumScape reported a generally accepted accounting principles (GAAP) loss of $134.5 million, a modest increase from $123.5 million in the quarter a year ago. On the bottom line, its loss per share of $0.25 was slightly worse than estimates at $0.22 per share.
Earlier this month, the company announced a new agreement with PowerCo, Volkswagen's battery division, which increased its cash runway to 2028, 18 months further than its earlier guidance. The deal creates a shared team of experts to collaborate on the new technology, and it also establishes a non-exclusive licensing agreement in which QuantumScape will receive $130 million in royalties when it reaches certain technical targets.
NYSE: QS
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What's next for QuantumScape
Quantumscape also reported progress on its production of battery cells, saying it was on track to complete the Raptor process ramp-up. Raptor is the first stage of its fast separator production process.
The partnership with Volkswagen is a clear positive, but investors are understandably growing impatient. The company has $938 million in liquidity and expects an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $250 million to $300 million for 2024.
It's still likely to be years before QuantumScape brings in meaningful revenue.
