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Plug Power Stock Plummets Amidst Funding Fears
24 Dec
Summary
- Plug Power's stock closed at $2.05, down 2.8% on Tuesday.
- A $1.7 billion DOE loan is potentially at risk due to suspended plant development.
- The company's stock has fallen 99% since its IPO in 1999.
Plug Power, a developer of hydrogen fuel cell and electrolyzer systems, saw its stock price fall an additional 2.8% to $2.05 on Tuesday, continuing a downward trend that has seen it lose nearly 10.5% in the last five days. Trading volume was also notably lower than its three-month average.
Positive developments, such as the installation of an electrolyzer at Cleanergy Solutions in Namibia, Africa's first integrated commercial green hydrogen facility, failed to stimulate investor confidence. This underperformance occurred while broader market indices like the S&P 500 and Nasdaq Composite saw modest gains, highlighting divergence within the energy sector.
Several factors are contributing to Plug Power's stock volatility. The company's suspension of green hydrogen plant development raises concerns about the security of a substantial $1.7 billion loan from the Department of Energy. Additionally, an announcement in November regarding a $375 million convertible note offering has diluted shareholder stakes and fueled worries about financial execution.
