Bloom Energy (BE) shares surged over 6% on Thursday after the company forcefully rejected a short seller report that had sent the stock tumbling 12% the previous day. Hunterbrook Capital published a report accusing Bloom of understating its reliance on Chinese scandium oxide suppliers, a key material in its solid oxide fuel cells. Hunterbrook disclosed it holds a short position in BE stock.
The report argued that Bloom’s goal of scaling from roughly 1GW of deployments in 2026 to 5GW annually would require approximately 220 tons of scandium oxide, nearly the entire projected global supply of 240 tons. It called the production targets “physically and commercially unattainable” and also raised questions about revenue quality, noting 74% of Q4 2025 revenue came from joint ventures with Brookfield. The firm pointed to delays at Oracle’s Project Jupiter and questioned Bloom’s $20 billion unaudited backlog.
Bloom Energy responded Thursday morning, calling the claims “false and misleading.” The company directed investors to its audited financials and stated it has sufficient scandium oxide to meet current demand and its full backlog, with no reliance on Chinese supply. Bloom said it has visibility into a supply chain capable of supporting up to 25GW of annual fuel cell production, pointing to a July 7 blog post that had already outlined its diversified procurement network.
The rebound came despite the short seller’s insistence that China’s dominance in scandium purification and tightened export controls since 2025 pose risks. Wall Street maintained a Moderate Buy consensus on BE, with nine Buy ratings, 10 Holds, and zero Sells over the past three months, and an average price target of $287.05. Bloom’s July 28 earnings report is now awaited for supply chain updates and production guidance, with analysts expecting EPS of $0.36 on revenue of $804 million.
