QuantumScape Corporation (NYSE: QS), a leader in developing solid-state battery technology to increase the range of electric cars, announced its financial results for the first quarter of 2021, which completed on March 31, 2021. QS stock plummeted adjacent to the news.
At last check-in after-market trading, shares of QuantumScape Corporation (QS) were down -3.56% at $28.43. QS stock closed the last session at $29.48, increasing 3.58% or $1.02. Shares of the company fluctuated between $26.2792 and $31.22 throughout the day. The shares of QuantumScape Corporation have retreated to -15.07% in the last five days; however, they have lost -29.56% over the last month.
About Quantum Scape
QuantumScape, a global leader in the manufacturing of solid-state lithium-metal batteries to be used in electric vehicles (EVs), went public through SPAC and is dominant in the EV battery space. The fourth quarter of 2020 depicted a strong financial result, as QSfinished its business combination with Kensington Capital Acquisition and started trading on the NYSE on Nov 27.
QuantumScape’slatest batteries can potentially revolutionize the EV area. Through lithium-metal technology, QShas set objectives to achieve ranges exceeding 300 with hyper-fast charging which accounts for a full charge in less than 15 minutes, low-cost vehicles which will be less than $30 thousand, and a long-lasting battery life consisting of more than 150,000 miles, hence speeding up the race to mass electric vehicle adoption. An increment in the use of cutting-edge technology may have facilitated a positive impact for the first-quarter performance of QS.
During the quarter under review, QuantumScape secured an additional investment of $100 million by its main shareholder Volkswagen, which may have helped to skyrocket the EV battery supplier’s prospects.
However, QuantumScape, which shares an area with battery makers such as Panasonic PCRFY and EnerSys ENS is still in its budding phase and is anticipated to not produce revenues until 2024. Also, in 2021, QS has aimed to pay between $230 million and $290 million combined as operating expense and Capex to assist its Omni-layer cell development. This has anticipated to further reduce the company’s margins.
QS did not offer a better-than-expected outlook for the current quarter and is anticipated to not produce revenues until 2024, with QS stock declining at the last check.