Fuzzy Panda published a report on Wednesday, highlighting the company's continued reliance on a Chinese supplier, with data from a whistleblower.
- The report published on Wednesday provides documentary evidence that the Texas-based solar module manufacturer bought $65 million worth of cells from China’s Trina Solar in the first quarter of 2026.
- The new Fuzzy Panda series builds on the firm’s May 19 report, which claimed T1’s Singapore entity Evervolt was a Trina-controlled front that would disqualify the company from tax credits and trigger accounting restatements.
- T1 Energy executives have often denied working with Trina.
Shares of T1 Energy Inc. (TE) fell 9% on Wednesday as short-selling firm Fuzzy Panda Research published the first installment of a whistleblower-backed series alleging material misstatements by T1 management about its solar-cell supply chain and continued reliance on banned Chinese supplier Trina Solar.
The report published on Wednesday provides documentary evidence that the Texas-based solar module manufacturer bought $65 million worth of cells from China’s Trina Solar in the first quarter of 2026 — directly contradicting public assurances from executives that the company had severed ties with the Chinese supplier to comply with U.S. Foreign Entity of Concern (FEOC) rules.
Fuzzy Panda’s New Findings
Fuzzy Panda said that a former insider contacted it the day after its May 19 report and supplied over 150 files, including 26 detailed bilingual invoices and purchase orders. The firm said that it independently verified the whistleblower’s identity, employment history, and credibility through background checks, legal databases, and an in-person meeting in Texas. The anonymous source reportedly alleged that T1 was “cooking the books” and that U.S. tax dollars were flowing to China.
The documents directly contradict explicit executive statements made as recently as May 19. EVP of Investor Relations Jeff Spittel said on a Twitter Spaces event that the company could not buy cells from Trina after the first of the year and was sourcing from four different vendors. CEO Dan Barcelo stated on the Q4 2025 earnings call that the supply-chain team was using international suppliers certified as non-FEOC.
The new Fuzzy Panda series builds on the firm’s May 19 report, which claimed T1’s Singapore entity Evervolt was a Trina-controlled front that would disqualify the company from tax credits and trigger accounting restatements. That earlier report, in which Fuzzy Panda disclosed its short position, triggered a drop in TE shares before a partial recovery fueled by bullish analyst notes, including Roth Capital’s call to “buy the dip.”
Why The Allegations Matter For TE’s Profitability
Solar cells represent the largest component of T1’s material costs. Under the Inflation Reduction Act’s 45X advanced manufacturing production tax credit, modules must meet strict FEOC restrictions: no more than 50% of component value can come from prohibited foreign entities. Fuzzy Panda calculates that disqualifying the credits would flip T1’s projected EBITDA margins from roughly +5.1% to –18.2%, rendering the business unprofitable without massive price increases or cost cuts.
How Did TE Retail Traders React?
On Stocktwits, retail sentiment around TE stock stayed within the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘neutral’ levels.
A Stocktwits user expressed doubts about the Fuzzy Panda report.
Yet another user opined that the company has “so many good things going for it and is going to make so much money in the future.”
TE stock has gained more than 450% over the past 12 months.
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