SunPower Stock Doubles in Meme-Craze-Fueled ‘Short Squeeze’
(Bloomberg) -- Heavily shorted SunPower Corp. shares more than doubled at one point on Tuesday, putting them on track for a record gain, as the stock of the solar power company got caught up in the latest meme-stock frenzy.
The stock of SunPower, which sells residential systems, climbed as much as 105% on the day, to as high as $5.63, after a roughly 20% advance Monday. The California-based company has added more than $400 million in market value this week, which has seen meme-stock traders once again pile back into the stocks of old targets GameStop Corp. and AMC Entertainment Holdings Inc.
As those traders bid up SunPower stock, short sellers have increased their bets against it. Short interest in the stock climbed to almost 96% on Tuesday, according to data compiled by S3 Partners.
“My strong suspicion is this a classic short squeeze probably connected with the rest of these meme stocks,” said Graham Price, a clean-technology analyst at Raymond James. He said SunPower is an ideal short-squeeze target because it has very high short interest, along with an extremely low float because the majority of its shares are owned by TotalEnergies SE.
Other US-based solar-equipment stocks also rallied. Maxeon Solar Technologies gained as much as 66%, Sunnova Energy International by 33% at its highest, and Sunrun Inc. by 15%. Price at Raymond James said the Biden administration’s move to hike tariffs on a range of Chinese imports, including solar cells, wouldn’t help SunPower because it’s no longer a manufacturer.
The rally led SunPower shares to wipe out a 2024 loss. A prolonged slump in the rooftop solar business has presented serious challenges. The company eliminated more than 25% of its workforce last month. it also made plans to shutter its residential installation locations and close its direct sales unit, said it expects to incur restructuring charges of about $28 million and announced it needs to restate almost two years of financial results.
A company spokesperson declined to comment on Tuesday.
The entire rooftop solar industry has been struggling, with elevated interest rates making it more expensive for people to install panels. California, the largest solar market, cut payments to homes and businesses that sell excess solar power back to the electric grid, a move that left the industry reeling.
(Updates shares.)
©2024 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More renewables news
![BloomburgMedia_SH40SLT0G1KW00_25-07-2024_09-26-50_638574624000000000.jpg](/media/orol425i/bloomburgmedia_sh40slt0g1kw00_25-07-2024_09-26-50_638574624000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133663732110870000&format=webp)
Vessel Firm’s $700 Million Takeover Targets Wind’s Ship Shortage
![Nordex](/media/d0gf3pte/nordex.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132749588018400000&format=webp)
Nordex Group upgrades guidance after strong H1 2024 performance with 25% sales increase
![Totalenergies (5)](/media/2jrkcvan/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132942325437870000&format=webp)
TotalEnergies launches new 100 MW/200 MWh battery storage development in Germany
![Totalenergies](/media/41ojyade/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132881916816700000&format=webp)
TotalEnergies acquires a stake in the OranjeWind offshore wind farm in the Netherlands
![Battery Storage (1)](/media/bedjsnil/battery-storage.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132953656215970000&format=webp)
EWEC issues request for proposals for the development of 400MW battery energy storage system
![BloomburgMedia_SGH4U3T0AFB400_24-07-2024_20-00-09_638573760000000000.jpg](/media/4zujntna/bloomburgmedia_sgh4u3t0afb400_24-07-2024_20-00-09_638573760000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133663248098100000&format=webp)
Refining Woes Hit Big Oil as Pressure Rises on Investor Returns
![Hydrogen Image (1)](/media/ouhfwhgg/hydrogen-image-1.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133093644996330000&format=webp)
EnBW to invest €1 billion in national hydrogen core network in Germany
![BloomburgMedia_SH2XDFT0AFB400_24-07-2024_09-00-10_638573760000000000.jpg](/media/jmmhvoyf/bloomburgmedia_sh2xdft0afb400_24-07-2024_09-00-10_638573760000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133662852101070000&format=webp)
GE Vernova Now Must Explain Broken Wind Turbine to Investors
![BloomburgMedia_SGTQ8GDWX2PS00_23-07-2024_20-00-09_638572896000000000.jpg](/media/obyb3qfl/bloomburgmedia_sgtq8gdwx2ps00_23-07-2024_20-00-09_638572896000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133662384097370000&format=webp)
SunPower Plunges After Halting Installs and Shipments
![BloomburgMedia_SH0RSNDWRGG000_22-07-2024_16-00-09_638572032000000000.jpg](/media/wyjmxear/bloomburgmedia_sh0rsndwrgg000_22-07-2024_16-00-09_638572032000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133661376098470000&format=webp)
American Farmers’ Next Hot Commodity Is Canola for Biofuels
![CSIS Thumbnail](/media/o0acqjyg/csis_thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133566075809700000&format=webp)
CSIS: long-term LNG demand to reshape global export capacity growth
![Dr Carole Nakhle Thumbnail](/media/gqrpjths/dr-carole-nakhle_thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133542056370600000&format=webp)
More women in energy vital to the industry’s success
![Vandana Hari Thumbnail](/media/gz3dyktl/vandana-hari-thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133511540022930000&format=webp)
India’s energy sector presents lucrative opportunities for global companies
![OIL INDIA Thumbnail (1)](/media/oddlww2x/oil-india-thumbnail-1.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133506537128730000&format=webp)
Oil India charts the course to ambitious energy growth
![DNV Thumbnail](/media/chkphnjn/dnv-thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133491856590700000&format=webp)
Maritime sector is stepping up to the challenges of decarbonisation
Partner content
![Navigating the trading seas: exploring the significance of benchmarks-1859882229](/media/qlacaiww/navigating-the-trading-seas-exploring-the-significance-of-benchmarks-1859882229.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133613577584600000&format=webp)
Navigating the trading seas: exploring the significance of benchmarks
![New Lng Ship Web 17829](/media/vjrjyypa/new-lng-ship-web-17829.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133179936218300000&format=webp)
Back to the Future(s): the best commodities benchmarks are still physically settled
![Dr Klaus](/media/4eyh2dr0/dr-klaus.jpg?center=0.3953747239980292,0.50683017007953435&mode=crop&width=540&height=300&rnd=133517897092430000&format=webp)
Ebara Elliott Energy offers a range of products for a sustainable energy economy
![ESSAR](/media/5uafghtj/essar.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524466961070000&format=webp)
Essar outlines how its CBM contribution is bolstering for India’s energy landscape
![HNC 7611 V2](/media/0dqbya15/hnc_7611_v2.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133517899616530000&format=webp)