SunPower stock plummets, company to stop installs and shipments

Shares SunPower (SPWR) are tanking around 30% on Friday morning after the company reportedly notified dealers that as of September 17 it will no longer support new leases and halt shipments. This comes after the company's announcement in April that it will have to restate almost 2 years of financial results.

Morning Brief Anchors Brad Smith and Seana Smith break down the latest development for SunPower and what it could mean for the company moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Nicholas Jacobino

Video Transcript

Some power shares are plunging after notifying dealers that as of September 17th, it will no longer be supporting new leases will be halting shipments.

This comes after the company's April announcement that it will have to restate nearly two years of financial results.

We're looking at losses the stock just above a dollar a share off 31% right now.

Pepper Piper Sandler and are both suspending their coverage on some power.

Following this letter here to dealers, you have Guggenheim analysts believing that the news effectively marks the end of some power as an operating business and you can see that reflected in the reaction that we're seeing in shares today here.

No, that is extremely alarming and I think investors are doing the right thing in dumping where uh we have seen to that extent over today's activity down 31%.

Look at that five day activity down by about 50 per, well, 60% in five days and three months down 52% here.

They say that they continue to dedicate their attention to address the financial position, actively working to navigate the current challenges here.

And this comes back to some of the internal documents that were originally reviewed by Reuters confirmed by the company as well, informing clients and telling them that they're gonna be having some operations that will be paused lease and power purchase agreements that would be deactivated as well from its sales platform plus not putting out new product shipments here.

Yeah, and also just go back to that Guggenheim note.

So you're asking maybe what exactly this means for others within the space.

The team there noting that market share is up for grabs.

They actually see Sonova Energy as the as the most likely beneficiary here, given their dealer focused model also willingness to pursue growth.

So again, when you're trying to identify maybe other potential beneficiaries there, Guggenheim naming a Sonova Energy as one of those names.