Shares of Quantumscape Corp. (QS) plunged 5.01% in early trading on Wednesday following a conflicting analyst report from HSBC. The bank downgraded the solid-state battery maker from Hold to Reduce, signaling potential concerns about the company's near-term prospects.

Interestingly, HSBC simultaneously raised its target price for Quantumscape from $5.3 to $10.5. This mixed signal from the analysts appears to have created confusion among investors, leading to increased selling pressure. The downgrade suggests that HSBC believes the stock may be overvalued at current levels, despite the higher price target.

The sharp decline in Quantumscape's stock price underscores the significant impact that analyst ratings can have on investor sentiment, particularly for companies in emerging technologies like solid-state batteries. As the market digests this conflicting information, investors will likely be closely watching for any further clarification from HSBC or responses from Quantumscape's management regarding the company's future outlook and technological progress.