SES AI Corporation

SES AI Corporation (NYSE: SES) is a battery technology company specializing in the development and production of advanced, AI-enhanced Lithium-Metal (Li-Metal) and Lithium-ion (Li-ion) rechargeable batteries designed for use in electric vehicles (EVs).

Positive Growth Aspects

• Strong Revenue Growth and Affirmed Guidance: SES AI reported second-quarter 2025 revenue of USD 3.5 million, contributing to a total of USD 9.3 million in the first half of the year. This performance positions the company well to meet its full-year revenue guidance of USD 15 million to USD 25 million. The reaffirmation of this target demonstrates management’s confidence in ongoing operational execution and market opportunities, particularly following the announcement of the UZ Energy acquisition. The deal is expected to bolster SES AI’s platform strategy and fuel future revenue expansion in the global energy storage sector.
• Improved Operational Efficiency and Robust Liquidity: The company made notable progress in cost containment, reporting a 51% year-over-year and a 53% quarter-over-quarter decrease in cash used for operations, down to USD 10.8 million. Additionally, SES AI ended the quarter with a strong liquidity position of USD 229 million in cash, cash equivalents, and marketable securities, with no debt on its balance sheet. This financial strength provides a solid foundation for continued R&D investment, expansion initiatives, and strategic acquisitions without the need for external financing.

Growth Challenges

• Limited Revenue Base in Context of Market Position: Despite its role as a global leader in Li-Metal and AI-enhanced battery development, SES AI’s quarterly revenue remains modest at USD 3.5 million. This highlights the early-stage commercial nature of its business, particularly when compared to its potential market size. While guidance indicates room for growth, the current scale of operations may raise questions about the pace of monetization and market penetration, especially in a rapidly evolving battery technology landscape.
• Uncertainty Around Finalized Financials and Long-Term Profitability: The financial figures released are preliminary, unaudited estimates and may be subject to material changes upon finalization. This introduces a degree of uncertainty for investors and stakeholders awaiting confirmed GAAP results. Furthermore, while SES AI emphasizes its "path to profitability," there is no clear timeline or visibility into sustained net profitability. The reliance on cash reserves and operational losses, though declining, still reflect a business not yet self-sustaining, which may concern risk-averse investors seeking near-term earnings visibility.

Technical Observation (on the daily chart):

SES has shown a strong bullish breakout on high volume (19.03M shares). The price is trading above both the 21-day and 50-day moving averages, confirming upward momentum, with a crossover signaling continued strength. However, the RSI at 73.78 indicates overbought conditions, suggesting a potential short-term consolidation before further upside.

SES AI Corporation delivered a mixed performance in Q2 2025, reflecting both encouraging progress and lingering challenges. The company reported USD 3.5 million in revenue, contributing to a solid USD 9.3 million for the first half of the year, and reaffirmed its full-year guidance of USD 15–25 million. Operational efficiency improved notably, with a 51% year-over-year reduction in cash used and a strong liquidity position of USD 229 million with no debt. However, revenue remains modest relative to its market potential, and the results are preliminary and unaudited, leaving some uncertainty around final figures. While SES AI's strategic acquisition of UZ Energy signals future growth ambitions, its path to sustained profitability remains in development.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to SES AI Corporation (NYSE: SES) at the current market price of USD 1.38 as of July 28, 2025, at 9:35 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 28,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.