Bloom Energy Stock Drops After Short Seller Questions China Supply Chain Claims

Shares of Bloom Energy Corp. fell by as much as 12% on Wednesday after short seller Hunterbrook published a report questioning the company’s statements regarding its supply chain and production capacity.

The report's central claim focuses on Bloom Energy's use of scandium, a rare earth element used in its fuel cells. Hunterbrook alleges that despite repeated claims from Bloom's CEO since February 2025 that the company has "no China supply chain," it remains dependent on Chinese scandium. The short seller said it used global trade data and other sources to trace four China-linked routes into Bloom's supply chain and quoted a representative from a Chinese supplier who allegedly identified their company as Bloom's largest supplier of the material.

The report highlights potential supply risks, noting that the Chinese government now requires an export license for all scandium shipments. Hunterbrook's supply-demand model also suggested that Bloom's production targets alone would require a significant portion of the total projected global scandium oxide supply, which it estimates is already insufficient to meet total global demand.

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Beyond the supply chain, the report also raised questions about Bloom's revenue growth and order backlog. It stated that in the fourth quarter of 2025, 74% of Bloom's revenue came from joint ventures the company partially owns. The report also cited potential issues with major client projects, including an alleged lack of permits for an Oracle project and an apparent delay in a large order from American Electric Power.

Hunterbrook also pointed to leadership turnover, noting the company has had four finance chiefs since early 2024. According to the report, Bloom Energy, its CEO, and other involved companies did not respond to Hunterbrook's requests for comment.