MW QuantumScape's stock is falling. Here's why Wall Street is panning the EV battery maker's earnings.

By William Gavin

The company is developing solid-state batteries, which promise to help lower the cost of electric vehicles. But achieving that goal will be expensive for QuantumScape.

QuantumScape is developing solid-state lithium-metal batteries that it says will be cheaper and safer while enabling faster charging than legacy batteries.

QuantumScape's stock is taking a tumble after the electric-vehicle battery maker forecast a more expensive year than had been expected on Wall Street.

The company sees a big opportunity to fuel the electrification boom with a cheaper type of battery. But getting there will be expensive.

QuantumScape $(QS)$ expects between $40 million and $60 million in capital expenditures for 2026, compared with $36.2 million in 2025. Analysts had foreseen capex of $46.2 million for this year, according to estimates compiled by FactSet.

QuantumScape does not yet generate meaningful revenue and is currently in the B-Sample stage of battery development, which focuses on tailored product integration and developing customer-specific strategies. It has at least three partnerships with global automobile makers, including Volkswagen (XE:VOW) $(VWAGY)$.

In 2026, QuantumScape plans to scale production through its pilot "Eagle Line" that was opened at its San Jose, Calif., facility last week. That line will serve as the "critical validation point" for its partnership with Volkswagen, Deutsche Bank analysts led by Winnie Dong said in a Thursday note to investors.

It will also help the company demonstrate its solid-state batteries, which promise to be cheaper and safer than the batteries currently used in EVs. They're viewed as one way to bring down the cost of electric cars, which are generally more expensive than gas-powered as well as hybrid vehicles.

But UBS analyst Joseph Spak remains skeptical. "The company's 2026 goals seem more ambiguous than last year which makes it difficult to understand what constitutes completion," he wrote, as he reiterated a sell rating and $2.50 target price on the stock.

Beyond showing its ability to scale production, QuantumScape plans to expand into additional markets, such as energy storage. In a letter to shareholders, executives said QuantumScape technology represents a "compelling and unique solution" for the energy-storage needs of data centers, robotics and other sectors.

"While these end markets are certainly large and exciting, and [QuantumScape] has talked about other end markets before, we wonder if they have the bandwidth with focus on this now," Spak wrote.

QuantumScape's stock was 9% lower in Thursday afternoon trading. The stock has fallen more than 22% this year.

For the latest quarter, the San Jose-based company reported a loss of 17 cents per share, in line with the FactSet consensus. QuantumScape reported a $63 million loss on the basis of adjusted earnings before interest, taxes, depreciation and amortization, slightly below the consensus estimate of $66 million.

Customer billings, which QuantumScape said give insight on customer activity and future cash inflows, came in at $19.5 million for 2025. The company said the metric is not a substitute for revenue under U.S. generally accepted accounting principles, or GAAP.

Read: QuantumScape's stock is still on a tear, but buyer beware, analyst says

QuantumScape also guided to an Ebitda loss of between $250 million and $275 million for 2026. Wall Street had projected a $282 billion loss for the year ahead of receiving guidance, according to FactSet. QuantumScape ended 2025 with $970.8 million in cash.

The Deutsche Bank analysts noted that the company's stock could be impacted by delays in moving into the next stage of battery development. They added that QuantumScape could also be hindered by negative sentiment around electric vehicles and reiterated a hold rating, while trimming their share-price target to $9 from $10.

Several automobile makers, including Stellantis $(STLA)$, General Motors $(GM)$ and Ford $(F)$, have pulled back on EV plans in recent months. Volkswagen, which plans to pay QuantumScape $131 million through its PowerCo battery subsidiary, last September said it would take a EUR5.1 billion hit related to delayed EV plans at Porsche (XE:P911) $(DRPRY)$.

See: Jeep maker Stellantis facing worst-ever stock rout as it takes $26 billion hit over miscalculating EV demand

-William Gavin

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February 12, 2026 13:54 ET (18:54 GMT)

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