The stock of T1 Energy is navigating a period of extreme volatility and contradictory pressures. Despite achieving a new 52-week high in late January 2026, the company finds itself simultaneously defending against a damning short-seller analysis and a newly announced investor probe. This divergence presents a complex puzzle for the market.
Operational Progress Provides a Counter-Narrative
Amid the controversy, T1 Energy has reported significant operational milestones. In late December 2025, the firm finalized the sale of Section 45X tax credits, generating $160 million. The transaction price was $0.91 for each dollar of credit value. Concurrently, management highlighted advancements in complying with the critical Foreign Entity of Concern (FEOC) regulations, which govern eligibility for U.S. tax incentives.
Further bolstering its business narrative, the company commenced construction on a new solar cell manufacturing facility in Texas in mid-December. These developments appear to be the foundation for investor optimism, helping explain the equity’s strength even under fire.
A Direct Assault from Short-Seller Culper Research
The positive momentum was sharply challenged on January 21, 2026, when Culper Research issued a scathing short report. The analysis labeled T1 Energy a “failed EV battery SPAC” and leveled two serious allegations. First, it claimed the company is not entitled to claim specific U.S. tax credits it has sold. Second, it pointed to connections with Chinese solar manufacturer Trina Solar—a potentially sensitive issue given U.S. policy efforts to reduce supply chain dependence on China.
Should investors sell immediately? Or is it worth buying T1 Energy?
The market’s initial reaction was a sell-off. However, in a paradoxical twist, the share price proceeded to hit its 52-week high on January 28 and 29, 2026, illustrating a market torn between skepticism and hope.
Legal Investigation Announced
Adding to the pressure, law firm Pomerantz LLP revealed on January 29, 2026, that it is investigating potential claims of securities fraud or other unlawful business practices on behalf of T1 Energy investors. This formal investigation announcement came just one week after the Culper report was published.
Financial Health Remains Under Pressure
Financially, the company continues to show strain. For the second quarter of 2025, T1 Energy posted a net loss of $32.8 million. To shore up its capital position, the firm conducted offerings of convertible notes and common stock in December 2025.
The coming weeks are poised to be decisive. The market awaits clarity on whether Culper Research’s allegations hold substance or if T1 Energy can successfully validate its tax credit eligibility and FEOC compliance. A key early indicator will be the anticipated final confirmation, expected in February 2026, of tax credits for production output from December.
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