QuantumScape's (QS) Performance Data Provides Some Answers, But Raises Even More Questions - Bernstein

December 9, 2020 10:21 AM EST
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Price: $21.80 -5.55%

Rating Summary:
    2 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 13 | New: 31
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Bernstein analyst Mark Newman weighed in on QuantumScape (NYSE: QS) after the company released performance data for its solid-state battery technology on 8th Dec as promised. Newman said while the impressive performance data provides some answers, its opens up even more questions.

Newman notes performance data was impressive showing decent cycle life of 800 cycles (vs. Auto OEM requirement typically 1000 cycles) and fast charge capability (15mins 80% charge, vs. 25-30mins best in class). However, "importantly these two metrics were not met at the same time," the analyst notes.

Further, the analyst notes that during fast charge (15min 80% charge) QS batteries only lasted 120 cycles. "Furthermore, effective energy density for the cells being tested were not being shown, which opens up more questions such as "was QS using a full 80-90% depth of discharge or were they using shallow charge/discharge cycles to enhance the data?". It is entirely possible that QS used a very shallow charge / discharge cycle to make these results possible, which in reality would mean a significantly lower effective energy density and significantly higher cost per effective kWh of storage. Questions around operating temperature window also remain, which although was significantly better than most solid-state battery tech out there, had significantly worse performance at lower temperatures."

The firm reiterated an Underperform rating and $28.00 price target on QS.

For an analyst ratings summary and ratings history on QuantumScape click here. For more ratings news on QuantumScape click here.

Shares of QuantumScape closed at $57.90 yesterday.



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