QuantumScape Corp. (NYSE:QS) shares plummeted 12.79% in intraday trading, as investors appear to be taking profits and repositioning ahead of the company's third-quarter earnings report, scheduled for release after the market close. The sharp decline comes on the heels of a recent rally that saw the stock hit a new 52-week high last week.

The pre-revenue company, which is developing next-generation solid-state batteries, has been a subject of intense investor interest. Analysts expect QuantumScape to report a loss of 20 cents per share. As a pre-revenue company, investors will be closely watching for updates on technological milestones, progress with automotive partners, and the path to commercialization.

Despite the day's significant drop, QuantumScape's stock remains in a bullish trend over the longer term. The stock is trading above its 50-day moving average of $11.49 and well above its 200-day moving average of $7.06. This pullback could be seen as a reset of expectations following the recent rally, which was partly fueled by China's new export licensing on critical battery materials, highlighting the strategic importance of US-based alternatives in the electric vehicle battery space.