Shares of Quantumscape Corp. (QS) plummeted 8.15% in pre-market trading on Thursday, as investors reacted to a significant downgrade and price target cut from UBS analysts. The sharp decline surpassed earlier pre-market estimates, reflecting growing investor concern over the solid-state battery manufacturer's prospects.

UBS dealt a double blow to Quantumscape by lowering its rating from Neutral to Sell and slashing its price target by 50%, from $5 to $2.5. This bearish outlook from UBS suggests a pessimistic view of the company's near-term growth potential and has triggered a substantial sell-off among investors reassessing their positions based on this new, lower valuation benchmark.

Quantumscape, known for its development of solid-state batteries for electric vehicles, has been facing increased scrutiny from analysts. According to FactSet, the company currently holds an average rating of "hold" with a mean price target of $5.50 among polled analysts. This latest downgrade from UBS could potentially influence other analysts' perspectives and further impact investor sentiment in the coming trading sessions.