FLNC - Why Fluence Energy Stock Is Plummeting This Week
2024-02-22 16:01:30 ET
Two weeks ago, things were going great for energy storage company Fluence 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.
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Why Fluence Energy Stock Is Plummeting This Week