PowerCell Sweden Shares Face Scrutiny After Critical Reports

PowerCell shares hit 52-week low after media reports question tech maturity. Management refutes claims, citing current-gen data and certifications.

Shares in PowerCell Sweden have come under significant pressure following investigative reports from two Scandinavian broadcasters. Swedish television (SVT) and Norwegian outlet NRK published findings that cast doubt on the technical maturity and lifespan of the company's fuel cell systems, citing internal documents and employee statements. The market reaction was swift: the stock now trades at a 52-week low, having shed approximately 32 percent of its value over the past week.

Management's Firm Rebuttal

The company's leadership has issued a strong denial of the allegations. According to management, the documents and tests referenced in the reports pertain to hardware that is two product generations old and therefore not representative of the current portfolio. CEO Richard Berkling pointed to evidence of the present systems' reliability, citing more than 200,000 hours of testing and over 500,000 hours of field data accumulated in collaboration with partner Bosch.

PowerCell further emphasized its industry certifications. Its development and production facilities comply with the internationally recognized AS9100 standard. Additionally, its maritime and industrial systems have received approvals from the classification societies DNV and Lloyd's Register—seals of approval considered particularly stringent within the sector.

Market Analysts and Board Response

The media coverage has influenced analyst sentiment. DNB Carnegie revised its fair value range downward from 26–69 SEK to 23–69 SEK. The analysts attributed this adjustment to increased market uncertainty and weakened investor confidence resulting from the reports, which led them to raise their assumed cost of capital to a range of 12–16 percent.

In a contrasting move, Board Chairman Magnus Jonsson sent a signal of confidence by purchasing 7,000 company shares following the price decline. The board also reaffirmed its support for the management team and the ongoing industrialization strategy.

Whether the data presented by PowerCell will be sufficient to restore investor trust will become clear once the market evaluates the substance of the company's counterarguments, moving beyond the initial headlines.