Edison International Stock Plunges As CEO Admits Uncertainty Amid Wildfire Liability Concerns: Retail Sentiment Hits Year-Low

Edison International (EIX) plunged more than 14% in mid-day trading Monday, hitting its lowest level in over two years, after CEO Pedro Pizarro said the company could not “rule out” the possibility that its infrastructure played a role in sparking wildfires currently burning near Los Angeles.

Southern California Edison (SCE), the utility arm of Edison International, is under scrutiny as fire officials investigate whether its equipment sparked a brush fire in a Los Angeles suburb. 

While no determination has been made, the company confirmed Friday that the Hurst Fire in San Fernando is part of the ongoing inquiry.

The uncertainty has weighed heavily on Edison International’s shares, which dropped to $55.27, levels not seen since October 2022.

“You can't rule out anything ever until you can get your eyes on the equipment,” Pizarro said in an interview with Good Morning America. 

He noted that SCE has not yet identified any “electrical anomaly” that would suggest a spark caused by utility infrastructure. However, he added that teams have been unable to inspect the equipment due to the active fire zone.

In a separate update Monday, Edison reported damaged equipment at the site of the Eaton Fire, north of Pasadena, but said it remains unclear whether the damage occurred before or after the fire ignited.

Edison International Sentiment and Message Volume on Jan.13 as of 12:00 p.m. ET | Source: Stocktwits

The fallout from these comments has been swift. On Stocktwits, retail sentiment around Edison International dropped to ‘extremely bearish’ (5/100) territory, hitting a year-low, with user chatter spiking to ‘extremely high’ levels (82/100).

One user predicted potential bankruptcy if the company is found liable for the fires, while another argued the sell-off is premature, citing the lack of evidence tying Edison to the wildfires. 

 

Nonetheless, fear-driven selling has accelerated, with multiple users noting they exited positions following Pizarro’s remarks.

Edison International’s stock has lost over 32% in the past two trading sessions and is down 19% over the last year.

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