BE Stock Drops 6% After Short Seller Flags Supply Chain Snag On Chinese Overreliance; Bloom Energy Says “Will Correct Record”

• Hunterbrook's investigation outlines trade routes connecting Bloom Energy to Chinese scandium.
• The report states Bloom's ambitious five-gigawatt production goals would require roughly 220 tons of scandium oxide annually, nearly exhausting the projected global supply of 240 tons. 
• Investigators challenged Bloom's unaudited $20 billion order backlog, highlighting that audited, binding performance obligations remain significantly lower at roughly $492 million.

Bloom Energy Corp. (BE) shares slid 6% on Wednesday after short-seller Hunterbrook Capital published a detailed investigation challenging the company's claims of supply chain independence. 

A Hunterbrook Capital report accused the clean-energy firm of hiding its heavy reliance on Chinese suppliers. The report, titled "Bloom's Big Lie," alleges that the clean-energy company heavily depends on Chinese-sourced scandium, a rare earth element required to manufacture its solid oxide fuel cells. 

The findings directly contradict public assertions from Bloom Energy CEO K.R. Sridhar, who has repeatedly stated since early 2025 that the firm maintains "no China supply chain" and does not rely on China for its scandium needs. 

Hunterbrook Capital said in its report that it is short BE, including derivatives and long a basket of comparable securities. 

BE stock ended Wednesday 5.7% lower, down for the second consecutive session. 

Hunterbrook’s Allegations

Hunterbrook stated it used global trade data, corporate filings, and satellite imagery to uncover four separate China-linked trade routes. The short-seller further noted that a representative from Hunan Oriental Scandium explicitly confirmed that the Chinese company serves as Bloom Energy's largest scandium supplier. 

Beyond the origin of the materials, Hunterbrook raised a severe supply-demand alarm regarding Bloom Energy’s long-term scaling targets. The report argues that the company's objective to expand to 5 gigawatts of annual production would require approximately 220 tons of scandium oxide. This volume constitutes nearly the entire projected global supply of roughly 240 tons, which Hunterbrook claims makes Bloom’s steep growth targets commercially unattainable. 

BE’s Official Response

“We are reviewing the report and will correct the record,” Bloom Energy told Stocktwits in a written statement. 

“Bloom's fuel cell platform is supported by a diversified, multi-country supply chain built over two decades, long-standing commercial relationships, and proprietary materials-recovery technology, as described in our public filings,” Bloom added. 

Bloom Energy, in a separate blog post published on July 7, mentioned that “scandium oxide makes up only a fraction of the ceramic material…and the total amount of scandium oxide used in each fuel cell is tiny—as a sprinkle of salt on your dinner.”

Bloom’s fuel cells require remarkably small amounts of scandium oxide to achieve a significant performance improvement. This combination of a very small material input producing a disproportionately large performance gain is why we use scandium oxide today, the company added. 

BE Stock: Retail View

Retail sentiment on Stocktwits was ‘bullish’ with ‘normal’ message volumes. Retail chatter on the stock jumped 260% over the previous session. 

One user highlighted that the current setup on BE requires patience. 

BE stock has jumped 192% year-to-date. 

Read More: NVDA, AVGO, MU, INTC Stocks Gain: Top Wall Street Traders See No Signs Of Panic In Chips Or AI Even As Correction Territory Looms

For updates and corrections, email newsroom[at]stocktwits[dot]com.