Shares of SunPower (SPWR) plunged 31% after the solar company issued a “going concern” warning that raised questions about its ability to remain in business.
In a regulatory filing, SunPower said it has breached a credit agreement and could potentially default on a debt payment. The company also delayed its third-quarter financial results.
“Substantial doubt exists about the Company’s ability to continue as a going concern,”
said the company in its latest 10-Q filing.
The rooftop solar company is majority owned by French energy giant TotalEnergies SE (TTE).
Home solar companies have been hurt over the past year by a slowdown in sales caused by high interest rates, which made it more expensive for consumers to pay for solar panels.
The industry’s difficulties are part of a larger collapse in clean-energy stocks that’s the result of central banks raising interest rates.
SunPower’s shares have now fallen 75% in 2023 to trade at $4.22 U.S. per share, making it a penny stock.
