In recent transactions, SK Inc., a significant shareholder in SES AI Corp (NASDAQ:NYSE:SES), sold a total of 347,794 shares of Class A Common Stock. The sales occurred on November 1 and November 4, 2024, at a weighted average price of approximately $0.45 per share, totaling $156,507. Following these transactions, SK Inc. holds 35,501,084 shares in SES AI Corp. These sales were executed directly by SK Inc., which holds more than 10% of the outstanding shares in the company.
In other recent news, SES AI has made substantial progress in its lithium metal battery technology and AI solutions, as revealed in the company's Third Quarter 2024 Earnings Call. The company completed key safety tests for its 100 mPOWER lithium metal B-sample cells and established supply agreements, including one with SoftBank (TYO:9984), expected to generate revenue from AI-accelerated battery material discovery. SES AI's financial standing remains solid, with cash usage for 2024 forecasted between $80-$95 million and a strong liquidity position of $274 million, ensuring a robust balance sheet through 2028.
The company has successfully passed EV safety tests and completed site acceptance tests for urban air mobility (UAM) and drone production lines. The introduction of a new 30 mPOWER cell tailored for UAM applications offers significant power density advantages. SES AI is also utilizing AI to improve cycle life by 20% and develop optimized charging protocols.
Recent developments include plans to develop a new electrolyte every six months to advance its material discovery capability. Contracts for AI-accelerated battery material discovery are anticipated in Q4 2024, and capital expenditure for 2024 is expected to be between $10 million and $15 million. The company is focusing on talent acquisition and GPU resources, with a keen eye on the rapidly growing UAM market in China.
InvestingPro Insights
The recent stock sales by SK Inc. come at a time when SES AI Corp (NASDAQ:SES) is facing significant market challenges. According to InvestingPro data, SES's stock has experienced a dramatic decline, with a 1-year price total return of -78.28% as of the most recent data. This downward trend is further emphasized by the stock's current price being only 16.54% of its 52-week high.
InvestingPro Tips highlight that SES is trading at a low Price / Book multiple of 0.49, which could indicate that the stock is undervalued relative to its assets. However, this low valuation may be justified given that the company is not profitable over the last twelve months and analysts do not anticipate profitability this year.
The company's financial health presents a mixed picture. While SES holds more cash than debt on its balance sheet, it is also quickly burning through cash. This situation underscores the importance of the company's ability to manage its resources effectively in the current challenging environment.
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for SES, providing a deeper understanding of the company's financial position and market performance. These insights could be particularly valuable given the stock's recent volatility and the significant insider sales.
SES AI Corp, headquartered in Boston, Massachusetts, is a company focused on developing and manufacturing high-performance lithium-metal rechargeable batteries for electric vehicles and other applications. The company went public through a SPAC merger in February 2022.
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