Shares of QuantumScape Corp. (QS) plummeted 5.01% in Wednesday's trading session, as investors appear to be positioning themselves ahead of the company's upcoming first-quarter 2025 earnings report. The solid-state battery developer is scheduled to release its results on April 23, and market sentiment seems cautious.

Despite the sharp decline, QuantumScape is among the few companies in the auto space that are expected to post an earnings beat, according to Zacks Investment Research. The company has an Earnings ESP of +8.07% and a Zacks Rank #2, which typically indicates a higher likelihood of surpassing earnings estimates.

The Zacks Consensus Estimate for QuantumScape's first-quarter loss is pegged at 21 cents per share. However, the company's recent track record has been mixed, with QuantumScape surpassing earnings estimates in only one of the trailing four quarters and missing on the other three occasions, resulting in an average negative surprise of 7%.

As QuantumScape continues to work on developing its solid-state battery technology for electric vehicles, investors will be closely watching for any updates on the company's progress and potential partnerships in the upcoming earnings call. The stock's volatility highlights the speculative nature of investments in emerging battery technologies and the high stakes involved in the race to revolutionize electric vehicle power systems.