Fuel cell manufacturer Bloom Energy is under investigation by multiple law firms for potential securities fraud, following a short-seller report alleging the company made misleading statements about its supply chain independence, which triggered a sharp stock decline.

On July 8, 2026, short-seller firm Hunterbrook released a report alleging that despite public claims by Bloom Energy CEO K.R. Sridhar since February 2025 that the company had no Chinese supply chain and did not rely on China for scandium, the firm in fact remained dependent on Chinese-sourced scandium through multiple trade channels. Scandium is a rare earth element used in a core component of Bloom Energy's solid oxide fuel cells. The report cited a sales representative from Hunan Dongfang Scandium Co., who stated the company was Bloom Energy's largest scandium supplier.

Hunterbrook further noted that to meet Wall Street's projected annual production target of 5 gigawatts, Bloom Energy alone would require approximately 220 tons of scandium oxide, while the global estimated total supply is only about 240 tons, indicating a significant supply-demand gap.

Following the report's publication, Bloom Energy's stock price fell as much as 12% intraday, ultimately closing down 5.67% at $254.29. Several law firms subsequently announced investigations into Bloom Energy, seeking legal recourse on behalf of investors concerning the company's potential violations of federal securities laws.

In response to the allegations, Bloom Energy stated it would set the record straight, adding that the company has a diversified, multinational supply chain and that the amount of scandium used in its fuel cells is minuscule, akin to a pinch of salt on a dinner plate.