Behind T1 Energy's 124% May Surge: A Factory Bet, a Short Attack, and a $190 Million Insider Exit

T1 Energy shares rocket 124% in May, but Trina Solar sells $190M stake and Fuzzy Panda short report triggers DOJ/SEC probes; Roth Capital maintains buy rating.

T1 Energy has just completed the strongest month in its corporate history, with shares rocketing roughly 124% in May. The stock now trades at €9.40, barely a whisper below the 52-week high of €9.45 and nearly 180% above April's trough. But the rally has drawn out a major seller as well as a bear raid — leaving investors to weigh a trio of competing signals.

Trina Solar (Schweiz) AG, a longtime shareholder, unloaded 22.5 million shares on the open market at prices between $8 and $9, netting around $190 million. The sale reduced Trina's holding to 30.65 million shares. That divestiture came just days after a short-seller report from Fuzzy Panda Research, published on May 27, accused the solar manufacturer of violating foreign ownership rules, selling intellectual property to Evervolt on questionable terms, and failing to disclose ties to Trina Solar. The Department of Justice and the SEC have both issued subpoenas, though no specific charges have been laid.

Roth Capital fired back immediately, calling the short-seller report misleading and reiterating its buy rating with a $10 price target. The bank noted that a hedge fund recently acquired ten million shares — a vote of confidence that helped absorb Trina's selling. BTIG also chimed in with a buy rating. The market capitalization has swelled to roughly $1.9 billion, though annualized volatility of 143% underscores the speculative nature of the name.

Behind the price action lies the operational story. T1 Energy runs the G1 Dallas gigafactory in Wilmer, Texas, churning out photovoltaic modules for utility, commercial, and residential projects. Management has guided for 3.1 to 4.2 gigawatts in 2026 and expresses confidence in hitting the upper end, citing improved sourcing of solar cells from outside China. The next leg of expansion is G2_Austin, a 2.1-gigawatt solar cell plant where concrete work began in April, steel erection is due in May, and first production is targeted for the fourth quarter of 2026.

The company funded that buildout with an upsized convertible note offering in April that raised net proceeds of $174.7 million. The overall financing strategy leans heavily on debt. At the end of the first quarter, T1 Energy reported $123.7 million in total cash, of which $46.4 million was unrestricted. On the income side, the company posted a net profit of $3.9 million for Q1 2026 and adjusted EBITDA of $9.1 million — a sharp improvement from the prior year when it was still operating under its old name, FREYR Battery. Revenue came in at $177.6 million, but a low single-digit gross margin kept the bottom line thin. The net loss, which stood at roughly $20.4 million in the quarter, has been narrowing.

Fuzzy Panda’s allegations, however, cast a shadow over the company's eligibility for U.S. tax credits and questioned the construction progress of G2_Austin. Roth Capital dismissed those concerns, pointing to a hedge fund's recent purchase and standing by its $10 price target. The stock’s current level of €9.35 to €9.40 leaves limited upside to that target, but the debate is far from settled. The next quarterly results, expected in August, will provide the clearest indication of whether the rally can sustain itself — and whether the short-seller’s claims have any lasting impact.