Battery developer QuantumScape (NYSE:QS) announced a new CEO while delivering quarterly results on Feb. 14.
Dr. Siva Sivaram was named to lead “the next phase” of growth, the company’s press release said.
QuantumScape remains a pre-revenue company. During the fourth quarter, it lost $110 million, 23 cents per share. It finished the quarter with $1.08 billion in cash and marketable securities. Losses were narrower than previously.
QS stock opened this morning at about $7.50 per share, a market capitalization of about $3.7 billion.
Who Is Dr. Sivaram?
Sivaram replaces founder Jagdeep Singh, who remains with the company. He joined last September from Western Digital (NYSE:WDC), where he also served as president. His specialty is taking products into high-volume production.
Investors had been looking for a production announcement from the earnings report. Sivaram is at least a step along that road.
QuantumScape has a solid state battery design that can, according to the company, take a car 600 miles on a charge. It can be recharged in a half-hour and discharged 1,000 times. The battery has triple the energy density of batteries from Tesla (NASDAQ:TSLA).
But the company, which is backed by Volkswagen (OTCMKTS:VWAGY), burned through $350 million over the last year without delivering a product. Investors have begun running out of patience.
I have been negative on QuantumScape for years, believing it a speculative venture that should be backed by venture capital. The company came public in 2020 when excitement over electric vehicles (EVs) and batteries was at its height. Since then, shares are down 79%, and analysts have turned negative.
Investors at Stocktwits have yet to give up. Bulls believe the appointment of Sivaram means QuantumScape will now become a manufacturing company.
QS Stock: What Happens Next?
Sivaram has the confidence of QuantumScape’s outside investors, but the clock is ticking. It’s time for the company to start delivering something other than press releases.
As of this writing, Dana Blankenhorn 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.
