QuantumScape stock (NASDAQ: QS) jumped roughly 10% in Wednesday’s after-hours trading despite an $84.5 million quarterly loss, as investors welcomed plans to manufacture solid-state batteries for artificial intelligence data centres and other high-value markets.
Shares had closed regular trading at $3.98 before the announcement.
The battery developer announced a partnership with Germany’s Muehlbauer Group to equip a 100-megawatt-hour production line targeted to start operating in 2028.
Its third-quarter loss was narrower than analysts expected on a per-share basis, while customer billings reached $9.8 million.
But QuantumScape remains unprofitable, and the rally reflects enthusiasm for a manufacturing plan rather than proven commercial-scale sales.
QuantumScape stock: Why investors overlooked another quarterly loss
QuantumScape reported a net loss of $84.5 million, equivalent to 14 cents a share, compared with expectations of approximately 17 cents. Its adjusted EBITDA loss was $60.7 million.
The company ended September with $819.8 million in liquidity, providing a financial cushion while it develops manufacturing processes.
Customer billings reached $9.8 million, including payments linked to automotive and non-automotive partnerships. Billings included the first invoices linked to its Honda partnership.
Those billings are not recognised revenue under US accounting rules, and should not be treated as evidence of a profitable business.
The immediate catalyst was the agreement with Muehlbauer, which will provide cell assembly equipment for QuantumScape’s proposed 100-MWh facility.
During Wednesday’s earnings call, Deutsche Bank analyst Winnie Dong questioned the ownership and financing arrangements, asking “who owns it, who pays”.
Chief executive Siva Sivaram said equipment costs borne by QuantumScape were targeted below $100 million, with customer, government and partner funding being explored.
Why AI data centres change the equation
QuantumScape built its technology around electric vehicles, where battery range, charging speed and durability determine commercial appeal.
AI data centres need something different: compact backup systems capable of delivering intense bursts of power near expensive computing equipment.
On 8 October, the company introduced QS PowerBlock, an in-rack energy storage design that it says delivered four times the power density and five times the runtime of a reference industry specification.
Those figures came from prototype testing and modelled configurations, not commercial installations. This could reduce backup-system bulk while protecting valuable computing equipment.
William Blair analyst Mark Shooter questioned on Wednesday’s call how cells originally designed for vehicles had been adapted for data-centre backup demands.
Sivaram argued that high-power operation and thermal stability make the technology suitable for data centres, where battery safety is particularly important.
The Muehlbauer deal takes the opportunity a step further by proposing volume production for data centres, aerospace and defence.
But customer interest and laboratory performance still need to become repeatable, economically viable manufacturing.
A 2028 target leaves big questions unanswered
The new production line is not expected to begin operating until 2028. Its location and complete funding arrangements have yet to be disclosed by the company.
QuantumScape maintained its 2026 adjusted EBITDA loss forecast of $250 million to $275 million and capital expenditure guidance of $27 million to $37 million.
UBS analyst Gabriel Gonzales asked during the call whether commercial agreements might arrive in 2027, before the new facility starts production.
Sivaram said management wanted multiple customers signed beforehand, highlighting how much execution remains between today’s pilot output and meaningful sales.
The company plans further disclosures about its next-generation batteries at a Kyoto symposium on 11 November.
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