Why Fluence Energy Stock Is Plummeting This Week
Two weeks ago, things were going great for energy storage company Energy (NASDAQ: FLNC). It reported strong fourth-quarter 2023 financial results, including a contracted backlog of $3.7 billion as of Dec. 31, 2023.
But things have taken a turn for the worse this week. The stock is in free fall after a critical report from a short-seller suggests the company is actually in a precarious position, contradicting the company's auspicious report earlier this month. As of 1:50 p.m. ET on Thursday, shares of Fluence are down 23.1% since the end of trading last week, according to data provided by S&P Global Market Intelligence.
Contending that Fluence Energy is facing "a financially untenable situation," Blue Orca provided a critical report of Fluence Energy predicated on a variety of factors. Arguably, the most concerning issue at hand is Blue Orca raising the issue that Siemens, Fluence's parent company, is engaged in litigation against Fluence "accusing Fluence of a laundry list of embarrassing and costly engineering and design failures, false representations, and most notably fraud." Furthermore, Blue Orca points out that Fluence has not disclosed this information to shareholders.
Source Fool.com
