Shares of T1 Energy Inc (NYSE: TE) fell 6.50% to $7.91 on Wednesday after short-seller Fuzzy Panda Research published a report alleging the solar manufacturer misled investors about its supply chain compliance. The report, a follow-up to Fuzzy Panda’s May 19 findings, claims a whistleblower provided 26 invoices showing T1 purchased more than $65 million in solar cells from China’s Trina Solar during the first quarter of 2026. This purchase allegedly occurred despite multiple company executives publicly stating the firm had stopped buying from Trina and shifted to four non-Chinese, FEOC-compliant suppliers.

T1 Energy invoices allegedly tie solar cells to Trina Solar

Fuzzy Panda, which holds a disclosed short position in TE, argues that the use of Trina Solar components violates U.S. FEOC rules tied to the 45X tax credit program. Under these rules, solar manufacturers must source less than 50% of material costs from prohibited foreign entities. Because solar cells represent the bulk of T1’s bill of materials, the research firm contends the company’s Material Assistance Cost Ratio sits at just 19%, well below the required 50% threshold.

Why T1 Energy’s FEOC compliance status could erase its profits

The distinction matters enormously for T1’s bottom line. The report contends that the $41.4 million in 45X tax credits T1 booked in Q1 2026 would need to be reversed. This adjustment would flip adjusted EBITDA from a reported positive $9.1 million to a loss of $32.3 million. Additionally, Trina Solar was added to the U.S. Department of War’s list of Chinese military companies operating in the United States just two days before the report’s publication.

T1 Energy Inc shares rose during Monday's premarket session as traders reacted to the company's agreement to acquire KORE Power Inc, a battery energy storage systems and software solutions provider. The deal, valued at an enterprise value of about $32 million, includes equity, cash, and assumed debt. The transaction is expected to close in the second quarter of 2026, after which T1 Energy plans to rebrand KORE Power as T1 NRI.

Acquisition Details

The acquisition targets KORE Power's NRI division, which has deployed approximately 1,100 BESS projects globally. The division focuses on utility-scale storage design, delivery, installation, and operations. T1 Energy has structured the deal with a performance-based upside, featuring a potential equity earnout of up to $9.6 million contingent upon fiscal 2026 and 2027 results.

Strategic Expansion

T1 Energy is currently building an integrated U.S. solar supply chain, with photovoltaic solar module manufacturing in Texas and a PV solar cell fab under construction in the state. Its revenue is derived from manufacturing and selling PV solar modules using PERC and TOPCon technologies to utility-scale developers as well as commercial, industrial, and residential customers. The KORE Power acquisition is intended to expand the company's portfolio beyond solar modules into energy storage systems and software, targeting the growing power demands of AI data centers.

Stock Performance

The stock is trading above every major moving average, reflecting a strong longer-term uptrend. Over the past 12 months, T1 Energy stock has risen 614.39%. At $10.05, the shares are trading 16.7% above the 20-day SMA of $8.61, 56.4% above the 50-day SMA of $6.43, and 85.7% above the 200-day SMA of $5.41. The moving-average structure remains stacked, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA.

Trading Levels

Technical indicators suggest continued upside pressure, with the MACD above its signal line and a positive histogram. Key resistance is identified at $12.49, representing the 52-week high zone. Key support is situated at $8.61, aligning with the 20-day SMA. T1 Energy shares were up 7.10% at $10.10 during premarket trading on Monday.