Stock declines after Fuzzy Panda Research discloses short position
T1 Energy Inc. (NYSE:TE) shares dropped more than 4.4% in premarket trading Tuesday after short seller Fuzzy Panda Research announced it had taken a short position in the company.
Fuzzy Panda published a report alleging that T1 Energy is not compliant with Foreign Entity of Concern (FEOC) regulations and may not qualify for certain U.S. tax credits.
According to the report, T1’s transfer of intellectual property to Singapore-based Evervolt was intended to establish FEOC compliance, but the short seller claims Evervolt maintains undisclosed ties to Chinese solar manufacturer Trina Solar.
Report questions ownership structure and tax credit eligibility
Fuzzy Panda stated that Evervolt is owned by Tan Chin Piaw, who the firm alleges has maintained business relationships with Trina Solar for more than 15 years.
The report further claims that patent records indicate the intellectual property remains under the ownership of Trina Solar rather than Evervolt.
According to the short seller, 99% of T1 Energy’s first-quarter revenue was generated through Trina Solar.
Fuzzy Panda also questioned the company’s eligibility for U.S. tax credits, alleging that T1 recorded $41.4 million in tax credits during the first quarter of 2026 despite not yet receiving them.
The report noted that Internal Revenue Service guidance issued in February 2026 established a July 4, 2025 deadline for intellectual property licensing agreements tied to FEOC compliance, while T1’s agreement with Evervolt was reportedly dated December 29, 2025.
Short seller also challenges construction timeline for solar facility
The report additionally alleged that construction of T1’s G2 solar cell manufacturing facility is behind schedule.
Fuzzy Panda cited drone footage taken in early May that it claims shows limited construction progress and estimated the project is running 12 to 18 months behind schedule.
T1 management has previously stated that the facility remains on track to begin operations in the fourth quarter of 2026.
The report also stated that T1 Energy has received subpoenas from both the U.S. Department of Justice and the Securities and Exchange Commission.