QS Stock Alert: QuantumScape Announces New President

Source: Tada Images / Shutterstock.com

QuantumScape (NYSE:QS) stock is in focus after the company announced that it had appointed Dr. Siva Sivaram as President, a newly created role. Sivaram most recently held the role of President of Technology and Strategy at Western Digital (NASDAQ:WDC) and has accumulated decades of experience in the semiconductor and data storage sector. Sivaram’s other past stints include roles at Intel (NASDAQ:INTC), SanDisk and Matrix Semiconductor.

“I couldn’t be more excited to be joining QuantumScape, the leader in solid-state battery technology,” said Sivaram. “The combination of QuantumScape’s disruptive technology, world-class team, and the massive market for next-gen batteries makes this a once-in-a-lifetime opportunity. I look forward to helping the company realize its vision.”

QS Stock: Dr. Siva Sivaram Joins QuantumScape as President

At QuantumScape, Sivaram will work closely with the technology and manufacturing groups to accelerate the transition from research and development to production. In its second-quarter earnings, the solid-state battery (SSB) company revealed that it sent high cathode-loading unit cells to several automotive customers and was in the process of collaborating with a customer in regards to its first commercial product, a ~5 Ah cell called QSE-5. QuantumScape added:

“We are already working closely with a prospective launch customer in the automotive sector for this cell, with the goal of bringing our next-generation technology to the electric vehicle market as rapidly as possible.”

Revenue during Q2 was $0, as expected. In addition, the company ended the quarter with $900 million in liquidity after burning through $124 million in GAAP operating expenses and $25 million in capital expenditures. QuantumScape believes that its cash balance will be able to sustain operations until the second half of 2025.

The cash runway somewhat coincides with Wall Street’s estimate for QuantumScape to generate revenue, which is during the first quarter of 2025. Analysts tracked by Koyfin believe that the company will generate $3 million of revenue in each quarter during 2024. Because QuantumScape is currently a non-revenue company, it’s difficult to stamp a valuation figure on it. However, shareholders of QS stock are hopeful that the firm will emerge as a leader in the SSB industry.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

More From InvestorPlace

• Buy This $5 Stock BEFORE This Apple Project Goes Live
• Wall Street Titan: Here’s My #1 Stock for 2023
• The $1 Investment You MUST Take Advantage of Right Now

The post QS Stock Alert: QuantumScape Announces New President appeared first on InvestorPlace.

batteries
electric vehicle