Bloom Energy shares fall on Oracle project halt

Investing.com -- Bloom Energy Corporation shares dropped 6.3% in morning trading on Monday to $270.66 after Oracle Corporation invoked a force majeure clause on its Project Jupiter data center development in New Mexico. The facility was designed to use electricity generated by Bloom's solid oxide fuel cell technology.

The decline removed a large portion of the stock's recent gains and raised concerns about Bloom's near-term revenue concentration tied to a single hyperscaler customer.

Loans connected to the Oracle-leased New Mexico facility have been trading at a discount to par value, according to reports. This suggests institutional lenders are accounting for higher execution and financing risk associated with the project.

Monday also marked the lead-plaintiff deadline in a federal securities class action lawsuit against Bloom Energy. The lawsuit alleges the company made misleading disclosures regarding its reliance on Chinese-sourced scandium oxide in its fuel cell manufacturing process.

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