Shares of QuantumScape (NYSE:QS) closed lower today as the development-stage quantum battery stock reported first-quarter results this morning. Investors appeared to want faster progress in the company’s battery cell development.
As a result, QuantumScape shares closed the session down 6.9%.
QuantumScape still needs time
QuantumScape still has no revenue and its operating expenses rose slightly to $131.9 million in the quarter from $110 million a year ago.
Capital expenditures were just $14.1 million, down from $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 previously announced four 2024 goals by shipping its six-layer Alpha-2 prototype battery cells to its automotive customers, calling it an important result for its potential launch customer.
The company continues to aim to begin small-volume production of QSE-5 prototypes, ramp up its Raptor process and prepare for Cobra production in 2025.
With no major news to announce, investors seemed to shrug off the quarterly report.
What’s next for QuantumScape?
QuantumScape reported earnings this morning, but its earnings conference call was scheduled for after-hours at 5:00 p.m. ET, meaning the stock could move tomorrow if management shares material information on the conference call.
Electric vehicle (EV) battery inventory has been gradually declining as investor expectations have cooled following a promising initial public offering (IPO) and revenue expectations are still modest. Analysts expect sales of $6.5 million next year.
The company has $1 billion in cash, cash equivalents and marketable securities, which should give it good opportunities for product development. Based on its free cash flow loss or cash burn of $71 million in the quarter, the company can afford to fund the business for about 3.5 years.
Investors hope the company will have a profitable 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