Latest news with #QuantumScapeCorp
Time of India
21-07-2025
- Business
- Time of India
QuantumScape stock tanks 17%! What's behind the sudden sell-off in the EV battery maker?
QuantumScape Corp. (NYSE: QS), the ambitious EV battery developer backed by Volkswagen, saw its stock plunge nearly 17% on Monday, July 21 , erasing much of last week's gains. After a dramatic surge driven by enthusiasm around its new 'Cobra' separator technology, investors appear to be locking in profits, raising questions about the company's long-term viability and near-term valuation. What caused QuantumScape stock to crash 17% today? Several key factors are behind the dramatic drop in QuantumScape shares: 1. Profit-taking after a monster rally QuantumScape shares had soared over +50% in just one week after the company revealed early production of its proprietary 'Cobra' separator. This technology is a crucial component in solid-state lithium-metal batteries, which are expected to outperform conventional lithium-ion cells in energy density, safety, and charging speed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Anne Hegerty And Her Partner, Who You Will Easily Recognize Sport Pirate Undo Cobra separator features : 25x faster heat-treatment process 80% smaller footprint vs prior techniques Designed for scalable solid-state cell production Despite no major commercial breakthrough, the mere prospect of manufacturing advancements sent traders into a buying frenzy. But as the stock climbed from around $9.50 to over $14.50 within days, short-term investors likely took profits, triggering the sharp correction. 2. Valuation concerns resurface Even after years of R&D, QuantumScape remains a pre-revenue company. It continues to burn cash and has not yet secured large-scale commercial contracts. The company's market cap reached nearly $7 billion last week despite zero product deliveries or income. Live Events Market Cap (July 19): ~$6.9 billion 2024 Q1 Net Loss: $124.6 million Cash on hand: $1.03 billion (as of March 31) This disconnect between market cap and revenue reality made many institutional investors wary. As retail hype faded, fundamentals took over. 3. Broader EV and battery sector weakness QuantumScape's sell-off also reflects broader uncertainty across the EV supply chain. Several major automakers—including GM and Ford —have recently slowed their EV production plans amid weakening demand and tightening margins. This cautious industry tone has trickled down to upstream suppliers like QuantumScape, which depend heavily on future OEM contracts that may now be delayed or reduced. 4. Short-seller pressure and high volatility QS remains one of the most volatile battery stocks on Wall Street, attracting heavy options trading and short interest. As of last week, over 18% of the float was sold short—amplifying the downward move when momentum reversed. Short Interest: ~18.3% of float Beta (5Y Monthly): 5.17 (extremely volatile) 52-week range: $4.92 – $15.40 Monday's trading volume surpassed 60 million shares , more than 6× its average daily volume , underscoring the sell-off's intensity. Is this a healthy correction or a warning sign? Analysts and Reddit investors seem to agree: this drop is likely a healthy correction after a hype-fueled rally. But it's also a reminder that QuantumScape remains a speculative play , highly sensitive to headlines, sentiment, and long-term timelines. If you're a long-term investor, here are two things to watch: Q2 2025 Earnings (July 23): Investors are awaiting updates on partnerships, production timelines, and capital expenditures. Cobra technology rollout: If QuantumScape can provide concrete proof of scaled-up Cobra separator production, the stock could regain momentum. What does RSI over 90 really mean for these hot stocks? The Relative Strength Index (RSI) is a momentum indicator ranging from 0 to 100. A stock is considered overbought when its RSI exceeds 70 — and anything above 90 is rare and often unsustainable. Currently: QuantumScape (QS) has an RSI of 90.92 Cogent Biosciences (COGT) sits at 90.74 Opendoor Technologies (OPEN) posts 90.82 These sky-high RSI numbers suggest that while these stocks are in strong uptrends, they may be due for a near-term correction or at least some consolidation. Why is QuantumScape (QS) under the technical scanner? QuantumScape shares ended Friday up 7.65% at $14.64, marking a massive 164.26% year-to-date gain and 84.15% over the past year. Technical indicators, including its MACD line at 2.10 and moving averages, point to a bullish trend. However, with RSI now approaching unsustainable levels, the momentum could slow down. In premarket trading Monday, QS dropped 3.96%, signaling possible cooling off. That said, the company continues to make headlines — especially after its latest collaboration with Murata Manufacturing Co. to further its solid-state battery technology. QS is betting big on becoming a key player in the electric vehicle revolution. Is QuantumScape still a long-term buy? QuantumScape's dream of commercializing solid-state batteries is transformative but still several years away . The recent stock swing is a classic case of "buy the rumor, sell the news" in a high-risk, high-reward sector. Investors should weigh: The company's cash runway (estimated into 2026) Upcoming milestones (like prototype deliveries to OEMs) Broader EV demand trends While the 17% drop may feel alarming, it's not necessarily bearish in the long term —as long as QuantumScape can keep delivering on its promises. What's behind Opendoor Technologies' explosive 36% surge? Opendoor Technologies (OPEN) jumped 36.36% on Friday, closing at $2.25. It's up 41.51% year-to-date, although still down 10.71% over the past year. Technicals remain solid, with its MACD and SMA metrics confirming momentum. But the RSI nearing 91 is a strong warning. According to Benzinga Edge Rankings, OPEN has the strongest short-, medium-, and long-term price trend, with a value ranking in the 76.19th percentile. In premarket action on Monday, OPEN was already up another 19.11%, reflecting continued bullish interest. However, such vertical rallies, when paired with extreme RSI, often end in either a sharp pullback or a sideways grind. Is Cogent Biosciences (COGT) still a solid momentum play? Cogent Biosciences (COGT) ended Friday up 2.38% at $12.49, logging a 60.13% YTD gain and 43.73% return over the past year. Its MACD line stands at 1.48, reinforcing bullish momentum. While the SMA data shows the price is above trend levels, the RSI of 90.74 points to potential exhaustion. Premarket on Monday saw COGT up another 2.00%, riding the biotech rally wave. But with momentum indicators stretched, traders may start taking profits soon. Are investors ignoring the red flags in this rally? While RSI alone isn't a sell signal, historical data shows that stocks trading above 90 RSI levels often experience short-term corrections. These stocks — QuantumScape, Opendoor, and Cogent — are clearly on strong bullish runs, driven by news flow, partnerships, and investor enthusiasm. But when all momentum signals are maxed out, caution is wise. Even the anonymous derivatives trader Heisenberg (@Mr_Derivatives) hinted on X, "Extrapolate how you see fit," suggesting that savvy traders should read between the lines. Should you buy, sell, or wait on these stocks? Here's the bottom line: QuantumScape (QS) is a strong EV battery play with major upside, but its RSI signals that it might cool off short-term. Opendoor (OPEN) is seeing aggressive buying, but RSI and YTD returns suggest it's due for a pause or pullback. Cogent Biosciences (COGT) has solid fundamentals and momentum, but again, RSI near 91 could bring volatility. Short-term traders should prepare for volatility, while long-term investors might want to wait for better entry points. As always, use multiple indicators, not just RSI, before making decisions. For comparison, broader indexes are also showing strength: The SPDR S&P 500 ETF (SPY) was down 0.27% in premarket at $629.30, while the Invesco QQQ ETF (QQQ) rose 0.30% to $562.96, according to Benzinga Pro. FAQs: Q1: Why is QuantumScape stock considered overbought now? QuantumScape's RSI is over 90, which usually signals the stock is overbought and may pull back soon. Q2: Is Opendoor a good buy after its huge price jump? Opendoor's high RSI suggests caution, as such rapid gains often lead to short-term corrections.
Yahoo
16-05-2025
- Business
- Yahoo
QuantumScape Corp (QS) Q1 2025 Earnings Call Highlights: Navigating Losses and Strategic ...
Capital Expenditures (CapEx): $5.8 million in Q1 2025, with full-year guidance between $45 million and $75 million. GAAP Operating Expenses: $123.6 million in Q1 2025. GAAP Net Loss: $114.4 million in Q1 2025. Adjusted EBITDA Loss: $64.6 million in Q1 2025, in line with expectations. Liquidity: $860.3 million at the end of Q1 2025. Cash Runway: Extends into the second half of 2028. Warning! GuruFocus has detected 3 Warning Signs with QS. Release Date: April 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. QuantumScape Corp (NYSE:QS) is on track with its product launch, with QSE-5 samples being shipped for module and systems level integration and testing. The Cobra separator process is ahead of schedule, with all required equipment installed and qualification progressing well. The company is expanding its commercial engagements, notably with Powerco, the battery manufacturing arm of Volkswagen Group. QuantumScape Corp (NYSE:QS) has announced a collaboration with Murata Manufacturing to accelerate the industrialization of its solid-state battery technology. The company maintains a strong liquidity position with $860.3 million, extending its cash runway into the second half of 2028. QuantumScape Corp (NYSE:QS) reported a GAAP net loss of $114.4 million in Q1 2025. The company expects capital expenditures to increase significantly throughout 2025, impacting cash flow. Adjusted EBITDA loss was $64.6 million in Q1, with full-year guidance for a loss between $250 million and $280 million. The company faces uncertainties and risks related to future technology progress and financial performance. Tariffs and geopolitical factors present potential challenges, although current impacts are expected to be marginal. Q: Can you update our investors on our automotive customer engagements during the quarter and explain how that affects our existing customer? A: The product launch is progressing well, with teams working closely and shipping necessary volumes for module and systems level testing. The response to our licensing business model has been positive, with active discussions and collaborations with prospective customers, including bespoke solutions tailored to their roadmaps. Q: Could you elaborate on the role of Murata Manufacturing in the licensing model and how this fits into QuantumScape's strategic blueprint? A: Murata is a key partner in scaling our solid-state battery technology efficiently. They bring expertise in high precision ceramics, crucial for high-volume production. This partnership aligns with our strategy to leverage global manufacturing strengths while maintaining innovation and technological advancement. Q: Can you discuss the tariff implications on QuantumScape's financial outlook and how the supply chain exposure compares to conventional lithium-ion? A: Current tariffs have a marginal impact on costs, and we are mitigating this through alternative sources and cost reduction efforts. Our anode-free design eliminates graphite, reducing supply chain risks. As a global technology licensing company, we focus on innovation and ecosystem development to meet global battery demand. Q: How does the competitive landscape, particularly advancements by LFP companies, affect QuantumScape's position? A: While we monitor developments from companies like BYD and CATL, our no-compromise solution offers superior safety, cycle life, energy density, and cost. Our lithium metal anode-free design remains a strong differentiator, and we continue to see enthusiasm from large OEM customers. Q: What are QuantumScape's thoughts on potential collaborations with Murata and the impact on high-volume production? A: Collaborating with Murata accelerates production efficiency and scale. Our technology company focus ensures IP protection and rapid market entry. The partnership enhances our ecosystem, combining skills for high-volume manufacturing and leveraging network effects for broader adoption. Q: Are there any updates on the work with Powerco and the initial phase of the agreement with Murata? A: Collaboration with Powerco is progressing well, with joint efforts to enhance automation and integrate the Cobra process. The Murata partnership is part of a broader strategy to strengthen the supply chain, with unique agreements tailored to specific needs, supporting efficient delivery of our battery platform. Q: How does QuantumScape view the potential for applications outside of EVs? A: While our primary focus is on the automotive sector, our high-performance battery technology has potential applications in data centers, aviation, and consumer electronics. We remain open to exploring these opportunities while prioritizing automotive advancements. Q: Can you provide more context on the financial implications of the licensing model? A: The licensing model includes royalties from product sales involving our technology, along with potential pre-pays and development reimbursements. We plan to provide a comprehensive financial picture as the model evolves and the ecosystem develops. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
24-04-2025
- Automotive
- Yahoo
QuantumScape Corp (QS): Among EV Penny Stock From $10 to Under $1
We recently published a list of . In this article, we are going to take a look at where QuantumScape Corp (NASDAQ:QS) stands against other stocks in EV penny list: from $10 to under $1. The global electric vehicle (EV) market is on a roll despite the ever-growing tariff turmoil triggered by US President Donald Trump. That was clear as EV sales increased by 29% in the first quarter, to 4.1 million on the sale of 1.7 million units in March. China, which continues to lead the world in EV adoption, reported a 36% year-over-year increase in EV sales in Q1, with sales in March alone topping 1 million units, a record last seen in August 2024. Due to the minimal cross-border EV sales, China is unlikely to experience significant impacts from the US-China tariff dispute. While North American EV sales were up by 16% in the first quarter, adding to the 7.3% increase in 2024, the market's long-term outlook remains unclear. That's in part to Trump's imposition of substantial tariffs on auto parts and other equipment that automakers need to ramp up the development of EVs. The 25% tax imposed in February on cars imported from Canada and Mexico and a larger levy imposed in March on all auto imports is anticipated to trigger a significant increase in EV prices. The impact on affordability and market dynamics is probably substantial, given that about 40% of US EV sales are imported from nations like Mexico, Korea, and Japan. Approximately two-thirds of the electric vehicles sold in the US last year were manufactured domestically, but, like all contemporary cars, the necessary parts and components are procured from various countries worldwide. The ongoing, intense trade conflict with China, the leading global supplier of materials for EV batteries, will further complicate the market. Additionally, there is substantial speculation that the new administration may undo the electric vehicle sales incentives established during the Biden administration, casting a shadow over the outlook for EV sales in the second quarter and beyond. Consequently, the remainder of 2025 is expected to be a tumultuous period for electric vehicle sales in the United States, even with the launch of new products and appealing incentives. Should the new automobile tariffs remain in place, they will create a significant obstacle for numerous automakers, mainly because of the tariffs applied to steel and, crucially for EVs, aluminium. Amid the headwinds, analysts expect 2025 to be a strong year for EV sales in the US, building on the positive momentum in 2024. Likewise, the stocks of companies exposed to the electric vehicle spectacle should be the biggest beneficiary, especially penny stocks trading at highly discounted valuations. To compile this list, we focused on companies within the EV industry, sourced from ETFs trading below $10 as of April 16. From this group, we identified 10 stocks most preferred by institutional investors, including those priced under $1. The leading EV penny stocks are ranked in ascending order based on hedge fund sentiment, derived from Insider Monkey's database of 1,009 hedge funds as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A line of electric vehicles parked in front of a research & development building in San Jose, California. QuantumScape Corp (NASDAQ:QS) is an auto parts company that focuses on developing and commercializing solid-state lithium-metal batteries for electric vehicles and other applications. The company is increasingly working on solid-state batteries that have demonstrated fast charging capabilities and high energy density. It has also initiated a strategic partnership with Volkswagen's battery company, PowerCo, to expedite the commercialization of solid-state battery technology. The agreement provides PowerCo with a non-exclusive license to leverage QuantumScape Corp's (NASDAQ:QS) technology platform for the large-scale manufacturing of battery cells. Volkswagen's electric vehicle battery division will have the capacity to produce up to 40 gigawatts-hours (GWh) each year, possibly increasing production to as high as 80 GWh. The Volkswagen strategic partnership is essential and could help the company break into the burgeoning electric vehicle space. Overall, QS ranks 6th on our list of stocks in EV penny list: from $10 to under $1. While we acknowledge the potential of QS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than QS but that trades at less than 5 times its earnings check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-04-2025
- Automotive
- Yahoo
Why QuantumScape Corp (QS) is Plunging in 2025?
We recently published a list of . In this article, we are going to take a look at where QuantumScape Corp (NASDAQ:QS) stands against other electric vehicle stocks that are plunging in 2025. The electric vehicle sector surged in popularity during the immediate post-COVID era as investors poured money into what seemed like the future of transportation. Back then, the promise of a green revolution fueled sky-high valuations and bold predictions. But that enthusiasm has since fizzled. Most electric vehicle stocks have plunged significantly and delivered consistent losses to shareholders. Tesla seems to be the only company capable of selling electric vehicles in the West profitably, but even that company has been under tremendous pressure due to the politicization of its brand. After Trump's election, things look even bleaker for these companies and many of them are plunging. That said, many analysts now think that there are buying opportunities here, especially as a large portion of Tesla customers who previously would've bought Teslas are now likely to buy alternative EVs. Trump may also be softer than previously thought on EVs, as EV subsidies are still in place. It's a good idea to take a look at the EV stocks that have been sold off the most so far this year. For this article, I screened the worst-performing electric vehicle stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A line of electric vehicles parked in front of a research & development building in San Jose, California. Number of Hedge Fund Holders In Q4 2024: 22 QuantumScape Corp (NASDAQ:QS) makes solid-state lithium-metal batteries designed for electric vehicles. The stock is down significantly so far in 2025 as QuantumScape has struggled to meet its original timeline for commercializing its solid-state batteries. It initially promised commercialization by 2024. The company has yet to sell a single battery, and insider selling has negatively impacted investor confidence. In late December 2024, Chief Development Officer Mohit Singh sold 180,000 shares worth over $1.1 million, and other insiders sold shares totaling over $2.1 million. QuantumScape continues to report widening losses, with a net loss of $115 million for Q4 2024 and an ongoing cash burn of approximately $338 million annually. Despite having a cash runway until the second half of 2028, the company's inability to generate revenue remains a concern for investors. The consensus price target of $34.37 implies 61% upside. QS stock is down 20.52% year-to-date. Overall, QS ranks 13th on our list of electric vehicle stocks that are plunging in 2025. While we acknowledge the potential of QS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QS but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
13-02-2025
- Business
- Yahoo
QuantumScape Corp (QS) Q4 2024 Earnings Call Highlights: Navigating Losses and Strategic Advances
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: $4.7 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. Warning! GuruFocus has detected 2 Warning Sign with QS. Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. QuantumScape Corp (NYSE:QS) 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 (NYSE: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 (NYSE:QS) ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028. QuantumScape Corp (NYSE:QS) reported a GAAP net loss of $114.7 million for Q4 2024 and $477.9 million for the full year. The company faces risks and uncertainties that could cause actual results to differ materially from projections. QuantumScape Corp (NYSE: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 (NYSE:QS) is operating in a competitive environment with other companies also pursuing solid-state battery technology. Q: What are the plans for PowerCo and the QSE-5 launch customer? A: B1 samples will support the demonstration phase of our customer's launch program targeted for 2026. We are pursuing a capital-light licensing business model, demonstrated by our collaboration with PowerCo. We are working on a technology package for PowerCo to take our QSE-5 platform to gigawatt-hour scale production. We are also in active discussions with two automotive OEMs about licensing arrangements. (Siva Sivaram, CEO) Q: Why is the company guiding to a flat CapEx and lower adjusted EBITDA loss in 2025 compared to 2024? A: The primary drivers are our licensing model, which requires less spending compared to a manufacturing model, collaboration with PowerCo, and the transition from Raptor to Cobra, which improves efficiency. (Kevin Hettrich, CFO) Q: Can you share more about QuantumScape's transition from B0 to B1 sample production? A: The solid-state separator is core to our technology. We are scaling up production with Cobra equipment, which is more efficient than Raptor. Our goal for 2025 is to integrate Cobra into the baseline and produce higher-volume B1 samples for the demo phase in 2026. (Siva Sivaram, CEO) Q: What feedback are you receiving from the two auto OEMs you are in discussions with? A: Engagement remains robust, with excitement about our technology as a long-term solution for electric vehicle adoption. Discussions involve deep technical diligence and ensuring the licensing model works for them. (Siva Sivaram, CEO) Q: What is the focus of the joint team with PowerCo, and what are the expected deliverables? A: The joint team, approximately half from each company, focuses on industrializing the technology. PowerCo aids in manufacturing and tool development, while QuantumScape focuses on core IP and scalable Cobra assets. (Siva Sivaram, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
