Electric vehicle (EV) battery technology company QuantumScape (NYSE: QS) provided a business update last week and investors liked what they heard. The stock shot higher by more than 20% on that news.

But reality set in this week as investors acknowledged there's still a long road for QuantumScape's technology to be commercially viable. That's led to a sharp decline in the stock this week. As of Friday morning trading, QuantumScape shares were lower by about 14% for the week, according to data provided by S&P Global Market Intelligence.

Last week the company announced it has achieved one of its most important goals for 2024. QuantumScape is working to develop a commercially viable solid-state battery that would improve electric vehicle performance in several ways. It has now fulfilled one short-term goal by shipping samples planned for its first commercial product to automakers for testing.

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Source Fool.com