QuantumScape stock is down after Goldman Sachs released bearish coverage, maintaining a sell rating despite raising the price target to $3 per share. The company’s solid-state batteries show promise, but the stock remains high-risk. As of 3 p.m. ET, shares were down 6.3%.

Goldman Sachs reiterated a sell rating on QuantumScape, noting encouraging signs with the company’s new Cobra manufacturing process and expanded deal with Volkswagen’s PowerCo. However, analyst Mark Delaney remains bearish due to unreflected risks, with the price target implying a potential 74.5% downside.

QuantumScape’s solid-state battery technologies offer potential advancements in the EV industry. The company secured a $131 million deal with PowerCo and has cash to fund operations through 2029. Stock could see significant returns if batteries gain market adoption, but it remains speculative.

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Read more at Yahoo Finance: Why QuantumScape Stock Is Sinking Today