SEOUL—SK Inc., a major shareholder of SES AI Corp (NASDAQ:NYSE:SES), recently sold a significant portion of its holdings in the company. According to a recent SEC filing, SK Inc. sold a total of 610,500 shares of SES AI Corp's Class A common stock over two days. The transactions occurred on October 16 and 17, with a total value of approximately $364,195.
The shares were sold at prices ranging from $0.59 to $0.60 per share. Following these transactions, SK Inc. retains ownership of 38,552,303 shares of SES AI Corp, including 3,829,028 Earn-Out Shares.
These sales reflect SK Inc.'s continued management of its investment in SES AI Corp, a company involved in the development of advanced battery technologies.
In other recent news, SES AI Corp. revealed its Q2 financial results and strategic initiatives, emphasizing its dedication to incorporating artificial intelligence (AI) into the development of advanced battery technologies. The company reported operating expenses of $24.6 million, cash used in operations of $22.1 million, and capital expenditures of $3.7 million, ending the quarter with a robust liquidity position of $294.7 million. SES AI also adjusted its cash usage guidance for 2024, demonstrating confidence in its financial standing.
Simultaneously, the company is progressing with its strategic joint development agreements (JDAs) with automotive partners Honda (NYSE:HMC) and Hyundai (OTC:HYMTF). SES AI is on track to deliver B-sample batteries for both partners, a crucial phase as it moves towards the mid-2025 C-sample timeline.
Deutsche Bank (ETR:DBKGn) resumed coverage on SES AI Corp. with a Hold rating and set a price target of $1.50, acknowledging the company's advancements in its JDAs.
In addition, SES AI is planning the completion of a lithium metal line in South Korea and the conversion of EV lines for UAM production. The company's AI will offer proactive manufacturing recommendations and reactive safety monitoring, positioning SES AI at the forefront of the AI transformation in the battery industry.
These are the recent developments for SES AI Corp, a company committed to capital efficiency and attracting top talent in the AI and battery sectors.
InvestingPro Insights
The recent sale of SES AI Corp (NASDAQ:SES) shares by SK Inc. aligns with several key insights from InvestingPro. According to InvestingPro data, SES's stock has experienced significant downward pressure, with a 32.65% decline in the past month and a staggering 75.15% drop over the past year. This trend is further emphasized by an InvestingPro Tip indicating that the stock "has taken a big hit over the last week."
The company's financial health also appears to be under strain. An InvestingPro Tip notes that SES is "quickly burning through cash," which may explain SK Inc.'s decision to reduce its stake. Additionally, the company's operating income stands at -$83.17 million for the last twelve months as of Q2 2024, underscoring the challenges it faces in achieving profitability.
Despite these headwinds, SES maintains a strong liquidity position. An InvestingPro Tip highlights that the company "holds more cash than debt on its balance sheet," potentially providing some financial flexibility as it navigates its current difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for SES, providing a deeper understanding of the company's financial situation and market performance.
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