SunPower's stock price has fallen to its lowest level in history, plummeting by 40%.
According to Zhitong Finance and Economics, the stock price of SunPower (SPWR.US) has fallen to its lowest level in history. The company told dealers that it would no longer support the installation of new equipment and would stop shipping. On Thursday, SunPower plunged nearly 40% to $1.51, becoming the second-worst performing component stock in the Nasdaq Composite Index. Due to the decline in the rooftop photovoltaic industry and internal problems, the company's market cap has shrunk by more than two-thirds this year. Bloomberg analyst Pol Lezcano said in an interview: "They are actually saying they cannot continue to operate."
According to a letter in a research report by Roth MKM, SunPower notified dealers that it will "no longer support new leasing and power purchase agreement sales, nor support new project installations" from September 17; all new transportation and project installations will be suspended. Roth analyst Philip Shen wrote in Thursday's report that the company may have "hit a wall."
"We will continue to focus on resolving our financial situation and actively addressing current challenges," the company wrote in an email. SunPower confirmed the contents of the letter cited in Shen's report.
It is not clear how long the installation suspension will last, and JPMorgan researchers say that the situation may not be resolved quickly. Analysts led by Mark Strouse wrote in a research report: "We believe this is not a temporary suspension, but an indefinite suspension of future trades in SunPower."
In April, the company had already stated that it needed to re-examine its financial performance over the past two years. The company also replaced its CEO and COO and defaulted on a credit agreement at the end of 2023 after previous revenue revisions, and is struggling to cope with the decline in installation volume in California (its hometown and the largest solar energy market in the United States).
French energy giant Total (TTE.US) owns about 65% of SunPower. Lezcano said that SunPower's decision to stop production indicates that the company's problems have deepened.
In addition, GLJ Research analyst Gordon Johnson downgraded SunPower's rating to "sell" and lowered its target price from $1.61 to $0.