QuantumScape Corp (NYSE:QS) shares are trading higher Thursday after the company said it began producing its first b-sample cells and started shipping them to customers for testing.
What Happened: QuantumScape reported third-quarter financial results after the market close on Wednesday. The company reported a third-quarter loss of 23 cents per share, which was in line with analyst estimates, according to Benzinga Pro.
In a letter to shareholders, the company announced that it started producing low volumes of its first B-sample cells, QSE-5. QuantumScape also said it began shipping the cells, which have energy density of over 800 Wh/L and fast-charging capabilities in under 15 minutes, for automotive customer testing.
"QSE-5 represents an important milestone for our company and the battery industry as a whole. These cells are, to the best of our knowledge, the first anode-free solid-state lithium-metal cell design ever produced for automotive applications. This cell is capable of simultaneously delivering exceptional performance with respect to energy density, discharge power, charging speed, low-temperature performance, and safety," the company said.
Moving forward, QuantumScape said it plans to continue shipping samples to customers for feedback. The company plans to refine its processes based on customer feedback, which is says will take "many months" to complete.
QuantumScape noted that it continues to target bringing its advanced Cobra separator process into production in 2025.
Outlook: The company reiterated that it has a cash runway extending into 2028. QuantumScape anticipates a full-year Adjusted EBITDA loss of $280 million to $300 million. The company also lowered its 2024 capital expenditures guidance to a range of $60 million to $75 million.
QuantumScape also announced that QuantumScape chairman and co-founder Jagdeep Singh will retire from the board at the end of the year. Dennis Segers, who previously served as chairman of Xilinx, will succeed Singh. The company also appointed Günther Mendl to its board. Mendl has been the head of the battery center of excellence at Volkswagen since 2022.
"Shareholders should take a balanced view of the achievement we have announced today. It is no more than the first shipment of early low-volume QSE-5 B samples. But at the same time, we believe it is no less than a true world first: an anode-free solid-state lithiummetal battery cell capable of revolutionizing electric vehicle performance," the company said.
QS Price Action: QuantumScape shares were up 19.9% at $6.21 at the time of publication, according to Benzinga Pro.
Photo: courtesy of QuantumScape.
