Why QuantumScape Stock Was Stalling Today

Shares of QuantumScape (NYSE: QS) 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.

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.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Volkswagen Ag. The Motley Fool has a disclosure policy .