By Senad Karaahmetovic
QuantumScape (NYSE:QS), which develops solid state lithium metal batteries for electric vehicles (EVs), reported a wider-than-expected loss for the fourth quarter to send its shares over 10% lower in pre-market Thursday.
Adjusted EBITDA came in negative $64.8 million while a loss per share was $0.25, bigger than the $0.22 expected.
"In 2022, we made significant advances in our technology, encountered and overcame obstacles, and ultimately achieved our major goal for the year," the company said in a letter to shareholders.
For 2023, the company sees cash operating expenses in the region of $225-275M while capital expenditures are seen at between $100M and $150M
"While specific customer testing protocols and results can’t be disclosed, we can report that generally, most cells have performed well on initial testing, including fast charge and early-cycle capacity retention; however, we must continue to improve cell reliability as we move from prototype to product. This is a key focus area for 2023, and we expect that as we make progress on the quality and consistency of our materials and processes, reliability will continue its upward trajectory," the company added.
Truist analysts reiterated a Hold rating and a $9 per share price target. They took note of continued progress made in reducing costs and extending its cash runway.
"For 2023, QS will aim to focus on further improvements to its cell design (higher energy density/reliability), as well as advancing its manufacturing processes. While noting the co's continued progress, the long-term path to commercialization and limited nearterm catalysts cause us to reiterate our Hold rating," the analysts said in a client note.