QuantumScape Corporation (NYSE:QS) Q1 2023 Earnings Conference Call April 26, 2023 5:00 PM ET

Company Participants

John Saager - Investor Relations

Jagdeep Singh - Co-Founder, Chief Executive Officer and Chairman

Kevin Hettrich - Chief Financial Officer

Conference Call Participants

Jordan Levy - Truist

Winnie Dong - Deutsche Bank

Chris Snyder - UBS

Ben Kallo - Baird

Mark Delaney - Goldman Sachs

Operator

Good day and welcome to QuantumScape’s First Quarter 2023 Earnings Conference Call. John Saager, QuantumScape’s Vice President, Capital Markets and FP&A, you may begin your conference.

John Saager

Thank you, operator. Good afternoon and thank you to everyone for joining QuantumScape’s first quarter 2023 earnings call. To supplement today’s discussion, please go to our IR website at ir.quantumscape.com to view our shareholder letter.

Before we begin, I want to call your attention to the Safe Harbor provision for forward-looking statements that is posted on our website as part of our quarterly update. Forward-looking statements generally relate to future events, future technology progress, or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize. Actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. There are risk factors that may cause actual results to differ materially from the content of our forward-looking statements for the reasons that we cite in our shareholder letter, Form 10-K and other SEC filings, including uncertainties posed by the difficulties in predicting future outcomes.

Joining us today will be QuantumScape’s Co-Founder, CEO and Chairman, Jagdeep Singh; and our CFO, Kevin Hettrich. Jagdeep will provide a strategic update on the business and then Kevin will cover the financial results and our outlook in more detail.

With that, I’d like to turn the call over to Jagdeep.

Jagdeep Singh

Thank you, John. I’d like to begin with an update on customer prototype testing. As you may recall, last year, we shipped a variety of prototype cells for testing the prospective automotive and consumer electronics customers, including 24-layer A0s to the automotive sector and zero externally applied pressure single-layer cells to the consumer electronics sector. We are happy to report today the planned testing of 24-layer A0 prototype cells in one automotive customer is now complete. And in line with what we reported in our last shareholder letter, most sales performed very well, leading performance targets on fast charge and generally showing good cycling capacity retention and high economic efficiency, with capacity loss of less than 1% of 100 cycles. However, we have work to do to improve reliability as we transition from prototype to commercial product.