SES AI Shares: A Cautious Rebound Amid Strategic Shifts

SES AI US78397Q1094

After a steep decline in the previous quarter, shares of battery developer SES AI have staged a notable recovery, climbing nearly 27% over the past month. However, this short-term rally is tempered by underlying fundamental challenges and a period of strategic realignment for the company.

The recent positive price action was highlighted on Friday, January 16, when the stock advanced 8.1% to $2.335. Trading volume for the session was 14% above the average. This uptick follows a difficult 90-day period during which the equity lost almost a quarter of its value.

Financially, SES AI remains in a pre-commercialization phase. For Q3 2025, the company reported revenue of $7.12 million, surpassing estimates. Nonetheless, it missed earnings forecasts, posting a net loss of $20.9 million. Its return on equity stood at a negative 35.31%, and operational costs remain elevated.

Analyst perspectives are divided. The consensus rating is "Hold," with a median price target of $3.00. In November 2025, Cantor Fitzgerald raised its target to $4.00 with an "Overweight" recommendation. Conversely, Weiss Ratings maintained a "Sell" rating in October. Forecasts project annual revenue growth of 160% over the next three years, alongside an anticipated loss per share of -$0.23 for the current fiscal year.

Strategic Moves to Enhance Visibility and Capacity

Management is actively engaging with the industry to showcase progress in its AI-powered lithium-metal battery technology. The company's visibility efforts include participation in CES in Las Vegas and an upcoming presentation at the NASA Aerospace Battery Workshop. Chief Technology Officer Dr. Kang Xu delivered a keynote at the Gordon Research Conference, while founder and CEO Dr. Qichao Hu presented virtually at the Needham Growth Conference, emphasizing applications in drones and energy storage systems (ESS).

Expansion is being pursued through acquisition and partnership. SES AI has completed the strategic acquisition of Shenzen UZ Energy Co., Ltd., a provider of energy storage systems. This move is designed to facilitate entry into the global ESS market, valued at $300 billion, and brings in-house hardware expertise and an established customer base across multiple continents.

Furthermore, a non-binding agreement has been signed with Top Material to scale cell production capacity in Korea for drone applications. A definitive agreement is expected in the first quarter of 2026.

The sustainability of the current share price recovery will likely face its next test with the quarterly results in February, which must demonstrate tangible progress toward commercialization.