QuantumScape (NYSE: QS) stock had a monster one-day trading session in the first week of the year when it shot up by more than 40% on Jan. 3. Shares of the solid-state battery technology start-up, however, gave all of that back and then some, and are now down 6% for the year. QuantumScape stock has fallen by a double-digit percentage this week, and was trading 14% lower for Friday's session as of 10:15 a.m. ET.

QuantumScape's early January surge came after its largest partner and investor reported hugely encouraging testing data for some of its batteries, but since then, news has come out that this same partner is reportedly looking other solid-state battery manufacturers to partner with. That report was big enough to send QuantumScape stock tumbling over the last few days, wiping out all of its gains from early 2024.

While most electric vehicles (EVs) currently run on lithium-ion batteries, QuantumScape is building solid-state batteries and has already shipped prototypes to its original equipment manufacturer (OEM) partners for testing. These partners include German automaker Volkswagen (OTC: VWAGY), which has also invested more than $300 million in QuantumScape over the course of their 11-year partnership.

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Source Fool.com