T1 Energy (TE) shares fell more than 6% on Wednesday following a critical report from short-seller Fuzzy Panda Research. The report alleges the company misled investors regarding its continued use of a prohibited Chinese supplier.
Whistleblower invoices reportedly show T1 purchased over $65 million in solar cells from Trina Solar in Q1 2026. Management had previously claimed the company ceased all business with the supplier.
Fuzzy Panda argues these transactions violate U.S. Foreign Entity of Concern (FEOC) regulations. Such a violation would make T1 ineligible for essential 45X tax credits.
The company may be forced to reverse $41.4 million in tax credits booked during the first quarter. This adjustment would convert T1’s reported adjusted EBITDA from a profit to a significant loss.