Bloom Energy (BE) Stock Surges 6% Following Rebuttal to Short Seller Claims

Key Takeaways

• BE stock surged more than 6% following Bloom Energy’s strong rebuttal to Hunterbrook Capital’s short report, which it labeled as “false and misleading”
• The short seller argued that Bloom’s ambitious 5GW production goal would consume nearly the entire global scandium oxide supply
• Bloom Energy countered by stating it maintains adequate scandium oxide inventory for both current operations and expansion plans, with no Chinese dependence
• Wednesday’s short report had triggered approximately a 12% decline in BE shares before Thursday’s recovery
• The company is set to report quarterly results on July 28, with Wall Street projecting EPS of $0.36 and revenues of $804 million

Bloom Energy (BE) shares surged over 6% during Thursday’s trading session as the clean energy company aggressively challenged a bearish report from a short seller that had hammered the stock a day earlier.

Bloom Energy Corporation, BE

On Wednesday, Hunterbrook Capital released a critical analysis targeting Bloom’s dependence on Chinese scandium suppliers. The material, scandium oxide, plays a crucial role in the company’s solid oxide fuel cell technology. Hunterbrook simultaneously revealed it maintains a short position in BE shares.

The central thesis of Hunterbrook’s bearish case centered on supply-demand mathematics suggesting that Bloom’s ambitious expansion from approximately 1GW of installations in 2026 to an annual capacity of 5GW would necessitate roughly 220 tons of scandium oxide. With worldwide production estimated at only 240 tons, the short seller characterized the expansion plans as “physically and commercially unattainable.”

The short seller’s report also questioned revenue composition, highlighting that 74% of Q4 2025 revenues originated from Brookfield joint ventures. Hunterbrook suggested these arrangements might represent project-finance structures rather than genuine end-user customers.

Additional concerns in the report included setbacks at Oracle’s Project Jupiter and a fuel cell purchase from AEP, while questioning the disparity between Bloom’s $20 billion unaudited backlog and merely $492.6 million in audited remaining performance obligations.

Company’s Counterattack

Bloom Energy issued a forceful response Thursday morning, characterizing the allegations as “false and misleading.” The firm urged investors to consult its audited financial documentation and official regulatory submissions instead of the short seller’s analysis.

Regarding scandium availability, Bloom emphasized it possesses sufficient supplies to fulfill existing customer commitments and its entire order backlog. The company explicitly stated it maintains no reliance on Chinese sources for scandium, and asserted it has identified supply chain pathways capable of supporting up to 25GW of annual fuel cell manufacturing.

The company had telegraphed this defensive posture. On Wednesday, Bloom informed Benzinga it was “reviewing the report and will correct the record,” citing a July 7 blog entry it had previously published addressing scandium oxide matters.

Wall Street’s Perspective

Analyst sentiment on BE stock reflects a Moderate Buy consensus, featuring nine Buy recommendations, 10 Hold ratings, and zero Sell calls over the trailing three months. The consensus price target stands at $287.05, suggesting approximately 9.3% appreciation potential from present trading levels.

Recent analyst activity reveals a cautiously optimistic outlook. Baird reaffirmed its Outperform stance with a $310 target on July 9. UBS elevated its forecast to $350 while maintaining a Buy recommendation on July 1. Jefferies kept its $310 objective, though it marginally increased to $246 with a Hold designation on July 6.

BE shares have delivered exceptional performance, advancing 785% during the past year. The stock trades above both its 100-day and 200-day moving averages, though it currently sits beneath its 20-day and 50-day averages following the recent downturn.

Critical resistance emerges around $303. Important support materializes near $247.50.

Quarterly earnings are slated for July 28. Wall Street anticipates EPS of $0.36, improving from $0.10 in the year-ago period, with revenues projected at $804 million, essentially doubling the $401 million recorded in last year’s comparable quarter.

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