Shares of T1 Energy Inc (NYSE:TE) are trading lower Tuesday morning following a report released by short seller Fuzzy Panda Research.
The report alleges that the battery-turned-solar manufacturer is “NOT an AI play” but rather a “China Hustle” heavily reliant on unearned U.S. tax credits. Benzinga has reached out to T1 Energy for comment regarding these allegations.
- T1 Energy stock is among today’s weakest performers. What’s weighing on TE shares?
Analysis Of Evervolt Partnership And Patent Compliance
According to Fuzzy Panda, T1 Energy’s claims of Foreign Entity of Concern compliance are an illusion. T1 reported that its critical intellectual property was transferred to an independent Singaporean firm, Evervolt, to secure lucrative federal tax credits.
However, the short seller claims Evervolt is a front and its owner, Tan Chin Piaw, has deep ties to Trina Solar and was named a director of a sanctioned Chinese state-owned enterprise in October 2025. Furthermore, patent databases show the IP remains registered to Trina Solar, and the deal missed a key July 2025 IRS deadline.
Review Of Import Documentation And Financial Projections
Fuzzy Panda also highlighted highly suspicious customs records where incoming shipments of “wood pallets” and “packing tape” precisely matched the heavy shipping weights of solar cells.
Already facing federal subpoenas from the DOJ and SEC, the company is allegedly facing massive imminent accounting restatements for aggressively booking $41.4 million in unearned first-quarter 2026 tax credits.
Without these vital subsidies, T1's estimated future operating margins are projected to plummet from a positive 6% to a deeply negative 31%, per Fuzzy Panda.
TE Shares Slide Tuesday Morning
TE Price Action: T1 Energy shares were trading lower by 9.14% at $6.36 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
Login to comment