Bloom Energy NYSE:BE shares climbed about 5% in premarket trading Thursday after retail investors largely dismissed a short-seller report released a day earlier, while the company continued to defend its supply chain.
Hunterbrook Capital disclosed a short position in Bloom Energy and alleged the fuel cell maker understated its reliance on Chinese suppliers for scandium, a material used in its fuel cell technology. The investment firm also questioned whether Bloom could secure enough scandium oxide to support its long-term manufacturing targets.
Bloom Energy responded that it is reviewing the report and intends to address its claims. The company said its fuel cell platform relies on a diversified global supply chain developed over two decades and that only small amounts of scandium oxide are required to improve fuel cell performance.
Retail sentiment appeared to improve following the report. Stocktwits users largely rejected the allegations, with some describing the report as market manipulation and others arguing that sourcing materials from China is common across many industries. Message activity on the platform also increased sharply.