SunPower Shares Skyrocket Amid Potential Short Squeeze

SunPower Corporation (NASDAQ:SPWR) saw its stock price soar by an impressive 61.2% during Tuesday's market activity, marking a continuation of its significant gain of nearly 20% from Monday. This leap is a part of a broader movement affecting stocks with substantial short interest, following the now-infamous GameStop rally.

Market Influencers and Meme Stocks

In a recent development, a renowned social media investor known as Roaring Kitty returned to the investing platform X. This stirred additional fluctuations in the market, reminiscent of the meme stock phenomenon that took place in 2021.

SunPower's Short Interest

SunPower stands out as one of Wall Street's heavily shorted stocks. According to Bloomberg data, about 95% of its shares available for trading, known as its float, have been sold short. Specifically, short sellers have targeted 42.39 million of the company's 44.57 million share float.

Policy Changes Impacting the Solar Industry

The Biden administration has recently been active with tariff policies, specifically announcing an increase in tariffs on solar cell imports from China. The new tariff stands at 50%, which is double the previous amount.

Solar Sector Movements

The recent tariff announcement and market dynamics have not only affected SunPower but also other solar energy companies. Maxeon Solar Technologies (MAXN) and Sunnova Energy (NOVA) have seen their stock prices climb by 52.2% and 24.4%, respectively. In contrast, performance across the sector is mixed, with various solar firms experiencing gains or losses to varying degrees.

Corporate Disclosure

To add to the current mix, SunPower disclosed after the market closed on Monday that its financial report for the first quarter will be delayed. The company identified certain misstatements while preparing its financial statements for the fiscal year ended December 31, 2023, warranting the filing of a Form 12B-25 for postponement.

SunPower, ShortSqueeze, Stocks