T1 Energy Inc (NYSE:TE) stock is trading higher on Wednesday as shares experience a recovery. The price action follows a highly volatile week marked by alternating institutional optimism and aggressive short-seller allegations.
• T1 Energy shares are powering higher. Why are TE shares rallying?
High Short Interest Fuels Squeeze Potential
Short interest in T1 Energy increased during the last reporting period, rising from 42.29 million to 44.16 million shares. This means short sellers have borrowed and sold 27.26% of the company’s publicly available shares. Based on the recent average volume of 15.49 million shares traded per day, it would take 2.85 days for these short sellers to close out their positions.
Shaking Off Fuzzy Panda Allegations
The Wednesday rally serves as a sharp reversal from Tuesday. TE shares plunged 9.14% to $6.36 after Fuzzy Panda Research released a short report.
The short seller alleged that the company is "NOT an AI play" but rather a "China Hustle" heavily reliant on unearned U.S. tax credits. Fuzzy Panda also claimed that T1 Energy aggressively booked $41.4 million in unearned first-quarter 2026 tax credits, warning that estimated future operating margins could plummet from a positive 6% to a deeply negative 31%.
T1 Energy has not yet publicly countered these specific claims.
Institutional AI Backing Provides Underlying Support
Despite the short-seller pressure, broader investor sentiment remains anchored by news from Monday when Leopold Aschenbrenner‘s Situational Awareness fund revealed a new stake in T1 Energy via its 13F filing.
The prominent fund purchased 10 million shares, valued at approximately $43.9 million. Market commentator Shay Boloor noted on X that Situational Awareness initiated positions in a wide range of AI and chip-focused names, including Nvidia, AMD and T1 Energy, cementing the company’s appeal among AI infrastructure traders.
Strong Earnings Baseline Formed In May
Adding to the upward momentum is the company’s underlying financial performance reported earlier this month. On May 12, T1 Energy beat Wall Street estimates for its first-quarter 2026 results.
The company reported a first-quarter loss of eight cents per share, outperforming the consensus estimate of a 14 cent loss, while revenue came in ahead of expectations at $177.65 million.
TE Stock Price Activity: T1 Energy shares were up 23.84% at $8.52 at the time of publication on Wednesday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment