This Bill Gates-backed battery maker is on track to do big things for electric vehicles: CEO
With the share price down 72% since the beginning of the year amid a general slowdown in the SPAC craze, QuantumScape founder and CEO Jagdeep Singh has a message to the market.
The aspiring solid-state battery maker remains on track with everything it announced when it debuted via a SPAC deal in late 2020.
Singh said on Yahoo Finance Live that the company still has its eye on commercializing its battery technology over the 2024-2025 period. His most important partner and supporter, Volkswagen, will be the first recipient of these batteries. Battery prototypes will be delivered to original equipment manufacturers (Volkswagen) in 2022.
Singh says the company is not considering raising capital in the short term to help expand its manufacturing presence.
QuantumScape plans to enter 2022 with total liquidity of $ 1.3 billion.
"I think it is encouraging that we are following this schedule well," said Singh of the start of commercialization of his batteries.
QantumScape was founded by Singh in 2010 and was supported early on by Microsoft founder Bill Gates and the car giant Volkswagen. Both continue to be investors in QuantumScape.
In early December, Singh publicly announced test results for QuantumScape's solid-state battery. QuantumScape's data showed that its battery cell could charge up to 80% of capacity in 15 minutes. In addition, it retains more than 80% of its capacity after 800 charging cycles, is non-flammable and offers almost twice the energy density of commercial high-end lithium batteries.
Singh highlighted another important milestone a week ago.
“We now have 10-layer [battery] cells. That's a big deal, of course, because while the single-layer cells are showing that the chemistry is working and we can make these solid-state cells and the performance is better than ever reported, and it's starting to fill the gap with internal combustion engines. We had to stack these in multiple layers to make larger cells. The results make us feel that we can meet our commercialization goals in 2024 and 2025, "said Singh.
J.P. Morgan analyst Jose Asumendi recently began coverage of QuantumScape with a hold rating with a price target of $ 35. QuantumScape stock is currently priced at $ 22.
"We are aware of the various risks associated with expanding industrial production," Asumendi wrote in a research release to customers. JPM's hold rating recognizes such risks, but puts a little more faith in QuantumScape's production schedule being met.
Asumendi added, "We anticipate the company can execute on its business plan as presented to investors on October 20, with QS's solid-state battery being commercially manufactured by two annual production facilities, QS-1 and QS-2 will." Capacity of 91 GWh (910,000 vehicles). In this scenario, the company estimates it could have sales of $ 6.4 billion and EBITDA of $ 1.6 billion (25% margin). "
Brian Sozzi is an editor and presenter at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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