Live: Will QuantumScape Shares Rally After Earnings Tonight?

We just highlighted the important interactions around PowerCo, but shares of QuantumScape are now bouncing back from their lows.

They’re currently down 12.5%.

That’s above the bottom, but investors clearly were concerned during the middle of today’s call.

There was just a very large back and forth about QuantumScape’s relationship with PowerCo, here’s how it played out.

Joseph Spak UBS Investment Bank, Research Division

Okay. The next question then just obviously, PowerCo is a deep and important partner here. There had been some reports that Volkswagen sort of slashed the funding there. Just curious if that sort of you felt at all that sort of impacted your business or your work with them or if it’s even increased some of your urgency to diversify to other customers?

Siva Sivaram Chief Executive Officer

Yes. So Joe, our work with PowerCo is continuing on unchanged. Their commitment to us is very, very good. Our relationship with them and the focus with which we are working together is as good as ever. We are both working towards a set of agreed upon scope of work that has not changed.

And we are continuing to build them the way we have agreed in that $131 million deal that Kevin just talked about. So in July of last year, we agreed on a scope of work. And our partnership is as strong as ever. And the work itself is lumpy as in the way it is planned in up and down, but we are doing very well with respect to Volkswagen.

That does not mean we are not working with other customers, as we announced in the letter, we have added 2 new large global auto OEMs to our portfolio with whom we are working with. And we have also announced additional technology development and technology evaluation agreements with them together. So this is in a good place. The customer interest has been very strong. And the Volkswagen and PowerCo relationship still remains very, very strong.

Joseph Spak UBS Investment Bank, Research Division

Okay. Last question for me, and you touched on some of this, and I just sort of want to better understand how you’re thinking about it because you talked about new end markets, opportunities in storage robotics, exciting stuff. But if I look at what you’ve done with the auto business, you’ve you’ve effectively, right, left the commercialization industrial relation to Powerco and other partners.

So as you move to these other end markets, like how is it — if you’re not making a sort of a standard cell — like and I understand Eagle line sort of helps you sort of do different form factors or different cells. But like aren’t you going to need to sort of reach out individually to help sort of scale these different form factors for these opportunities?

Just — it just seems maybe a little bit more difficult as you go to some of these other end markets where there might be some more bespoke use cases versus the old strategy, which was doing yourself, but maybe I misunderstand that…

Siva Sivaram Chief Executive Officer

Very perceptive question. I’m glad you asked. The licensing and capital-light business model is not a single flavor. There are a lot of different ways of doing the same thing, have made rights, having contract manufacturing, having our partners manufactured for others, having customer provided manufacturing abilities there are many different ways of doing it.

As long as we are not spending the capital to build it, we can do this very well. And these markets are fully amenable to these business models. So we are exploring those with our new customers. I’m not saying that we rule anything out, but our preference has always been to a licensed and capital-light business model. So I’m glad you asked this question, even in these markets, such different variations on this came on very possible.

Kevin Hettrich Chief Financial Officer

We did — I did have a chance to get the slide you referenced. The prior reference to $260 million or $261 million is when you sum both parts of the of the economics of Volkswagen together with the $130 million prepaid and the up to $131 million of development payments. That’s the former number you referenced.

In this last letter, as footnoted, what we’re doing is we’re only — we’re having more of a backward-looking view where we’re only counting the billings to date plus the $130 million. So it’s a different cut at the same 2 numbers. Nothing changed contractually.

Joseph Spak UBS Investment Bank, Research Division

Okay. So nothing changed with that other — with that delta, that sort of more potentially to come.

Kevin Hettrich Chief Financial Officer

It’s looking at the bird in the hand relative to billings as opposed to the bird in the bush would be up to.

Wow, QuantumScape shares are taking an absolute pounding during this call.

Let’s look at what’s happening.

Yan Dong Deutsche Bank AG, Research Division

In your prepared remarks, you alluded to various verticals, including data centers and robotics, aviation as potential applications outside of automotive. And I think in the past, consumer electronics was also a potential application as well.

I was wondering if you can help us understand is there 1 vertical where your technology is more suitable than the other ones? For instance, I’m just trying to understand in this — example, stationary storage. A lot of companies that are picking up that they were trying to use LSP. So just curious like why is lithium [indiscernible] even better for some of these applications?

Siva Sivaram Chief Executive Officer

Yes. So let me start out and Kevin has some strong views on the subject that he’ll continue on. Clearly, the architecture that we have developed with the ceramic separator, provides you what we call a no compromise solution, meaning concurrently, at the same time, we can deliver high energy density, high power density in both charge and discharge, better safety capability, cycle life. And because we eliminate the anode, we have better and because the formation is so short, we can deliver a better cost profile. Each of these markets that we just talked about have unique needs.

For example, as you ask the consumer electronics product is very big on volumetric energy density. We are trying to make sure that we size the opportunity, work with customers, move rapidly so that we can take our no-compromise cells and fit it into the appropriate platform, appropriate form factor and quickly get to market.

That’s the idea behind. And as you would expect, the automotive market still is the larger market, and we remain focused on it. And logically, the automotive market is also takes the longest time to develop, qualify and deploy into larger fleets. These are just facts of the marketplace that we work with, but the cell itself is so useful across different markets that we do think it’s logical for us to take that lead.

Kevin Hettrich Chief Financial Officer

Yes. As Siva mentioned, we’re starting from a good place with that no-compromise battery, the advantage is laid out, there’s — we see opportunities over the formants of [indiscernible] across the broad set of energy storage applications. I believe you listed several potential applications. Consumer electronics tends to really get excited about the volumetric energy density advantage.

AI data center safety, drones and anything that flies loves the gravimetric savings and the power and the grid, at least for the major load shifting application values cost per round trip cycle. So we believe we can offer compelling solutions in all these spaces. And as a management team, it’s our job, how many of these do we do [indiscernible] and in what order do we sequence them to both delight our customers and to optimize returns for our shareholders.

And everything we just discussed about, we’re intending in goal #3 that we laid out in our letter today, expand into high-value markets.

Siva Sivaram Chief Executive Officer

And Winnie, the whole thing is enabled by the Eagle line. The Eagle line allows us the flexibility of going and trying without because we have the ability to make more samples for more customers. And that is what makes this whole thing possible. .

We’re on the QuantumScape call and shares are absolutely plummeting. We’ll post an update with thoughts currently.

Shares are now off 14%.

QuantumScape shares are down 3%. As we noted earlier, there is no cause to panic for investors. This sale is likely from a lack of specifics.

What comes next is the company’s earnings call.

We will post our updates from their earnings call on this live blog. What I’d recommend doing is leaving this page open and you can update it for future updates as the call will begin in 15 minutes.

If there’s a major movement on the call, we will react to it and provide analysis.

We’ll keep updating and QuantumScape’s earnings call is up next, but if you’re enjoying this live blog, there’s more ways to keep updated from 24/7 Wall St:

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Bull Case

QuantumScape Bulls point to two consecutive quarterly beats after a year of misses, suggesting improved execution. The company’s cash position rose 38% YoY to $241M while operating cash burn improved 31%, extending runway for commercialization. Customer billings reached $12.8M in Q3, indicating growing commercial traction. Director Geoffrey Ribar’s 36,102-share purchase on January 29—just 13 days before earnings—signals insider confidence heading into tonight’s report.

Bear Case

Bears note the company remains pre-revenue with expected revenue of $0 despite years of development. Heavy insider selling dominates recent activity: director Dipender Saluja dumped 3.3M shares in December at $11–$12, while CEO Srinivasan Sivaram sold 258,677 shares in November. Shares are down 17.7% over the past month and 83.9% over five years, reflecting persistent skepticism about commercialization timelines.

QauntumScape outlined the following goals in their earnings.

• Demonstrate scalable production with the Eagle Lnie
• Advance Automotive Commercialization
• Expand into new high-value markets
• Go Beyond GSE-5

You can their full outlook below.

Shares initially were flat, then turned green, and are now falling after QuantumScape announced earnings.

They’re now down about 4.3%.

Our initial read on the earnings is simply there’s not much new here which is leading to some selling, but we’ll continue digging through them.

QuantumScape earnings are out, the company announced -$.17 EPS and no revenue (inline with expectations).

There’s little initial movement, but investors will need to digest commentary.

If the clock ticks past four and you see some movement in QuantumScape, it’s probably nothing. We don’t expect the company’s earnings to cross newswires until around 4:15 p.m. ET.

If you’re looking for a daily news source that not only tells you the biggest news but the profit plays on it, make sure to check out 24/7 Wall St.’s Daily Profit newsletter.

Another area you might be interested in is top AI stocks as the trend continues accelerating in 2026. Once again, we’ve got you covered with our new Top 10 AI Stocks report. It’s free and will introduce some companies seeing absolutely massive growth this earnings season.

QuantumScape shares slid in early trading today but have rebounded slightly. They’re down about 2% today.

That daily drop follows several weeks of selling. Between January 21st and February 5th, shares declined by 30%.

Today will give the company the opportunity to reverse recent negative sentiment.