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Bloom Energy Stock Falls After Short-Seller Alleges Supply Chain Misrepresentation
Summary
Shares of Bloom Energy Corp. declined after short-seller Hunterbrook Capital released a report accusing the clean-energy company of misrepresenting its supply chain's independence from China.
Bloom Energy (BE) shares fell by as much as 7.4% in afternoon trading after a detailed report from short-seller Hunterbrook Capital was published. The report alleges that Bloom has been misleading about its reliance on Chinese suppliers for a critical component in its fuel cells.
The report, titled "Bloom’s Big Lie," claims the company sources scandium, a rare earth element essential for its solid oxide fuel cells, from China. This contradicts repeated statements by CEO K.R. Sridhar since early 2025 that the company has "no China supply chain." Hunterbrook stated it identified multiple China-linked trade routes and cited a representative from Hunan Oriental Scandium who allegedly confirmed being Bloom’s largest scandium supplier.
Hunterbrook Capital, which disclosed it holds a short position in Bloom Energy stock, also raised concerns about the company's growth targets. The report argues that Bloom’s goal of 5 gigawatts of annual production would require nearly the entire projected global supply of scandium oxide, making the target appear commercially unfeasible.
AdIn response to the allegations, a representative for Bloom Energy said the company is reviewing the report and intends to correct the record. A full rebuttal had not been issued by the time of afternoon trading.
Pressure on the stock was compounded by negative sentiment in the clean-energy sector. Peer company FuelCell Energy priced a $225 million equity offering at a significant discount, sparking broader concerns about financing conditions. The decline also occurred amid a wider market downturn, with the S&P 500 and Dow Jones both trading lower.