QuantumScape Corporation (QS, Financial) has announced a strategic partnership with Murata Manufacturing Co. to advance the high-volume production of ceramic films essential for its solid-state battery technology. This initial phase of their agreement aims to leverage Murata's expertise and reputation in the field of high-precision ceramics manufacturing.
Murata is globally recognized for its contributions to the design, production, and distribution of ceramic-based electronic components and solutions, including communication and power supply modules. The collaboration will focus on integrating QuantumScape's innovative Cobra separator production process with Murata's extensive manufacturing capabilities.
This partnership is expected to enhance the scalability of QuantumScape's solid-state batteries, a promising technology in the energy storage sector. By combining their resources, both companies aim to create substantial value and meet the demands of the global electronics market, which increasingly requires reliable and efficient battery solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for QuantumScape Corp (QS, Financial) is $5.48 with a high estimate of $8.00 and a low estimate of $2.50. The average target implies an upside of 37.56% from the current price of $3.98. More detailed estimate data can be found on the QuantumScape Corp (QS) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, QuantumScape Corp's (QS, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Key Business Developments
Release Date: February 12, 2025
- Capital Expenditures (CapEx): $11.2 million in Q4 2024; $62.1 million for full year 2024.
- GAAP Operating Expenses: $128.7 million in Q4 2024; $525.2 million for full year 2024.
- GAAP Net Loss: $114.7 million in Q4 2024; $477.9 million for full year 2024.
- Adjusted EBITDA Loss: $64.7 million in Q4 2024; $285 million for full year 2024.
- Liquidity: $910.8 million at the end of 2024.
- 2025 CapEx Forecast: Between $45 million and $75 million.
- 2025 Adjusted EBITDA Loss Forecast: Between $250 million and $280 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- QuantumScape Corp (QS, Financial) achieved its four key goals for 2024, including the shipment of Alpha-2 samples and the ramping of the Raptor separator process.
- The company began low-volume B0 production of QSE-5 cells, which boast industry-leading performance metrics such as high energy density and fast charging capabilities.
- QuantumScape Corp (QS) released its advanced Cobra separator heat treatment equipment, setting the stage for higher volume B1 production in 2025.
- The partnership with PowerCo, Volkswagen Group's battery manufacturing company, is a cornerstone of QuantumScape's commercial licensing strategy.
- QuantumScape Corp (QS) ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028.
Negative Points
- QuantumScape Corp (QS) reported a GAAP net loss of $114.7 million for Q4 2024 and $477.9 million for the full year. Adjusted EBITDA loss for the fourth quarter of 2024 were $64.7 million.
- The company faces risks and uncertainties that could cause actual results to differ materially from projections.
- QuantumScape Corp (QS) is still in the process of transitioning from Raptor to Cobra, which involves significant operational changes.
- The commercialization of the QSE-5 platform is still in the demonstration phase, with full-scale production targeted for 2026.
- QuantumScape Corp (QS) is operating in a competitive environment with other companies also pursuing solid-state battery technology.
