QuantumScape rises after earnings as solid-state EV battery development ramps up

Shares of QuantumScape (QS) are on the rise on Wednesday after the company reported quarterly results. The Volkswagen (VWAGY)-backed startup announced deeper than expected losses for the quarter as it ramps up development of solid-state EV batteries. Losses widened to (12c) per share from (6c) a year ago, with consensus at (7c), as research and development expenses almost tripled to $36.8M. QuantumScape also said that, "we are excited to announce that we have made and are currently testing our first 10-layer cells." "We had set ourselves the goal of showing results from 10-layer cells by the end of 2021, so we are encouraged that we have the first 10-layer cells this early. This reflects a rapid rate of progress over the last few quarters, with single-layer results in December, followed by four-layer results in February, and now 10-layer cells in July. We will seek to continue to improve the performance of the 10-layer cells through the rest of 2021, including ongoing improvements to the quality, consistency, and throughput of our separator, demonstrate several dozen layers in 2022 and produce test cells for vehicles on our QS-0 pre-pilot production line in 2023... Our longer-term targets remain unchanged - we aim to deliver prototype samples in commercially relevant form factors to automotive OEMs from our engineering lines in 2022, provide cells for R&D test cars from QS-0 in 2023 and enter commercial production in 2024-2025." In Wednesday morning trading, shares of QuantumScape have gained almost 9% to $23.24.