Why QuantumScape Stock Is Jumping Today

QuantumScape (NYSE: QS) stock was surging higher Thursday, and the share price was up 8.6% as of 1 p.m. ET today. Meanwhile, the S&P 500 index was up 0.5%, and the Nasdaq Composite index was up 0.8%.

QuantumScape published its fourth-quarter results after the market closed yesterday and reported a smaller-than-anticipated loss. The company also issued encouraging guidance for 2025.

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QuantumScape rises on a solid fourth quarter

QuantumScape's business is still in a pre-revenue state, and the company posted a loss of $0.22 per share in the fourth quarter. On the other hand, this was still below the loss per share of $0.24 based on the average Wall Street analyst estimate. Capital expenditures came in at $11.2 million for the quarter and $61.2 million for the full-year period.

The business posted a net loss of $114.7 million in the fourth quarter and a net loss of $477.9 million for the full year. The company closed out the year with cash and equivalents of roughly $140.9 million and marketable securities of about $769.9 million, giving it sufficient financial flexibility to continue operating through at least the next year without the need to sell new stock.

Fourth-quarter results showed encouraging cost management, but the biggest positive indicator with the earnings release was management's guidance for 2025.

QuantumScape issues an encouraging outlook

QuantumScape is still developing its solid-state battery and has yet to record any revenue for its core business. But if these batteries live up to their potential and pave the way for dramatic improvements in charging rates, charge capacity, and safety for electric vehicles (EVs), the stock could deliver massive returns.

Management says that it expects to begin baseline production for its Cobra solid-state battery separator equipment and build out its manufacturing capacity this year. The company also says that it anticipates shipping samples of its QSE-5 B1 battery this year for a potential launch through an automaker in 2026.

Given their existing relationship, it's possible that this customer could be Volkswagen. If new information emerges that suggests QuantumScape is on track to see its batteries begin commercial sales next year, the company's share price could rise far above its current range.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.