Bloom Energy Corp. (BE) stocks jumped nearly 3% in the premarket session on Thursday as retail investors dismissed a short-seller report from Hunterbrook Capital released on Wednesday. Hunterbrook accused Bloom Energy of concealing its reliance on Chinese suppliers for scandium, a key material in its fuel cells, despite CEO K.R. Sridhar's repeated claims of having no China-linked supply chain. Retail investors on Stocktwits called the report 'manipulation,' with sentiment shifting from neutral to bullish and message volumes surging 446% within 24 hours. BE stocks have risen 157.67% so far this year, driven by surging demand and partnerships with hyperscalers.
Hunterbrook Capital Accuses Bloom Energy of Chinese Supply Chain Concealment
On Wednesday, Hunterbrook Capital accused Bloom Energy of concealing its reliance on Chinese suppliers for scandium. The short-seller argued that Bloom's plan to scale production to 5 gigawatts annually would require nearly the entire projected global supply of scandium oxide, raising questions about the feasibility of its growth targets. Hunterbrook stated that CEO K.R. Sridhar had repeatedly claimed Bloom has no China-linked supply chain.
Bloom Energy Defends Diversified Global Supply Chain
Bloom Energy responded, saying it is reviewing the report and defended its diversified global supply chain. The company added that fuel cells require only tiny amounts of scandium oxide to deliver significant performance benefits.
Retail Investors Call Report Manipulation on Stocktwits
On Stocktwits, retail sentiment around BE stocks improved from 'neutral' to 'bullish' territory at the time of writing, with message volumes surging 446% within 24 hours.
One bullish user said, "$BE the same way pre IPO investors have to wait like six months to sell their shares once the company's public these hedge funds that produce these short reports should have to hold their short positions for six months because if they're going to publish this and ruin a company reputation and then have an instant 10 to 20% drop and then they can sell it for a profit that's just ridiculous that's manipulation they should stand by their short and have to deal with the consequences..."
Another user said, "Everyone buys from China. And I'm sure the 'current' production might not be enough, but um. Pretty sure they can INCREASE production if the demand is there." The user encouraged buying the dip.
A third user said the stock is "holding well even with the China allegations. Investors are holding and not getting spooked. Good job holding!"
FAQ
What did Hunterbrook Capital accuse Bloom Energy of on Wednesday?
Hunterbrook Capital accused Bloom Energy of concealing its reliance on Chinese suppliers for scandium, a key material used in its fuel cells, despite CEO K.R. Sridhar's repeated claims that Bloom has no China-linked supply chain. Hunterbrook also argued that Bloom's plan to scale production to 5 gigawatts annually would require nearly the entire projected global supply of scandium oxide.
How did Bloom Energy respond to the short-seller report?
Bloom Energy said it is reviewing the report and defended its diversified global supply chain. The company added that fuel cells require only tiny amounts of scandium oxide to deliver significant performance benefits.
Why did retail investors dismiss the Hunterbrook report?
Retail investors on Stocktwits called the report 'manipulation,' with some arguing that many companies purchase Chinese materials and that short-sellers should be required to hold their positions longer. Sentiment around BE stocks shifted from neutral to bullish, with message volumes surging 446% within 24 hours.
