Shares of Bloom Energy Corp. dropped as much as 12% on Wednesday following publication of a report from short seller Hunterbrook that contests several of the company’s public statements on where it sources material inputs and how much it can produce.
Hunterbrook’s report focuses on scandium, a rare earth element used in Bloom’s fuel cells. The short seller maintains Bloom relies on Chinese scandium supply, a claim at odds with repeated statements from Bloom’s CEO since February 2025 that the company has "no China supply chain" and is "not dependent on China for scandium."
Alleged China-linked supply routes
The short seller reports it identified four China-linked routes into Bloom’s supply chain using global trade data, Chinese corporate filings and satellite imagery. Hunterbrook says a sales representative from Hunan Oriental Scandium - a company that claims over 50% of the global market for fuel-cell-grade scandium oxide - told the short seller that Hunan Oriental is "BE’s largest supplier of scandium," according to the report. The analysis notes Beijing now requires an export license for every shipment of scandium leaving China.
Supply-demand math and production expectations
Using its own supply-demand model, Hunterbrook estimated Bloom alone would need roughly 220 tons of scandium oxide to meet Wall Street’s 5 gigawatt production expectations. The short seller contrasts that with a projected global supply of only about 240 tons against total global demand of about 310 tons, suggesting limited headroom for additional production without constrained inputs.
Questions on revenue, backlog and project readiness
Hunterbrook also raised concerns about Bloom’s reported revenue growth and order metrics. The report notes that in the fourth quarter of 2025, 74% of Bloom’s revenue came from joint ventures the company part-owns with Brookfield. It highlighted an apparent discrepancy between an unaudited $20 billion order backlog and remaining performance obligations of $492.6 million as of March 31.
The short seller flagged specific projects as well. It said Oracle’s Project Jupiter in New Mexico has no approved air permit for fuel cells and lacks a gas pipeline, and that American Electric Power’s $2.65 billion fuel cell order appears to have been delayed from a target deployment by the end of 2028 to one "no later than 2030," according to the report.
Corporate governance and responses
Hunterbrook’s report also called attention to turnover in Bloom’s finance leadership, noting the company has had four finance chiefs since the start of 2024, including nearly a year with no permanent CFO. The report states Bloom, its CEO, Oracle, Brookfield and AEP did not respond to Hunterbrook’s requests for comment.
Market impact
The report and subsequent market reaction highlight investor sensitivity to supply-chain exposure for manufacturers of advanced energy equipment and the potential mismatch between public statements and underlying supplier relationships. Questions raised about backlog recognition and project permitting add to uncertainty over near-term revenue visibility.
Where available, market participants will be watching for responses from Bloom and the named partners for clarification on sourcing, order accounting and project timelines.