After seeing its stock price drop more than 20 percent on Tuesday, Bloom Energy took issue with a report from a short seller.
Bloom Energy issued the following statement in response to a report published by Hindenberg Research, entitled “Bloom Energy: A “Clean” Energy Darling Wilting to its Demise”.
The fuel cell maker has its main production site in Newark.
“The authors of the research note did not engage with Bloom Energy to validate the assertions made in their report. We strongly disagree with the conclusions drawn. In particular, the service replacement liability mentioned in the report is grossly misleading. Bloom Energy will make a further statement on this topic in due course.”
The lengthy report was widely distributed via the Seeking Alpha investor website. Hindenburg disclosed in the report that it is a short seller of Bloom stock
The lengty report included a laundry list of long-running criticisms of the company and its technology as well as well as allegations regarding how the company accounts for replacement of fuel cells.
Mentioned in the report was the controversial Bloom Energy deal that feeds ower from its fuel cells into the Delmarva power grid in New Castle County.
Hindenberg claimed that that Bloom did respond to a list of questions it submittd.
Bloom Energy stock has been under downward pressure after its most recent earnings report. Shares slipped to $3.25 a share after the posting of the Hindenberg report.
