T1 Energy Shares Fall 7.5% After Hours as U.S. Probe Into Disclosures Emerges
Key Facts
T1 Energy shares fell 7.5% in after-hours trading on Nov. 12, Bloomberg Law reported, after the company disclosed an investigation by the U.S. Securities and Exchange Commission into its disclosures related to eligibility for 45X production tax credits. The company said in its quarterly report that the SEC’s Fort Worth regional office notified it in September 2026 that it had opened the investigation. The probe covers public disclosures on credit eligibility and other accounting matters. T1 said it intends to cooperate with the SEC. It added that the duration and outcome of the investigation could not be predicted.
Credit eligibility has financial significance for the company. T1 said it had generated $155.3 million in 45X production tax credits through the third quarter of 2026 and had held several discussions about monetizing them. The company said a third-party review estimated that about 65% of its supply-chain materials were not linked to foreign entities of concern, based on an analysis through the second quarter of 2026. In its third-quarter results, the company reported a net loss from continuing operations of $34.7 million, or $0.12 a share. Its net loss attributable to common shareholders was $41.6 million, or $0.14 a share, compared with a loss of $140.8 million, or $0.87 a share, in the same period of 2025. Its gross margin was 8.5%, and adjusted earnings before interest, taxes, depreciation and amortization were negative $16.4 million.
T1 attributed its gross-margin and adjusted profitability results to higher facility costs as production increased to build inventory, as well as higher general and administrative expenses. Selling, general and administrative expenses totaled $71.2 million in the third quarter; the company said the increase was linked to growth in its technical and operational workforce, and higher financing, transaction and legal costs. The Dallas facility produced 1,056 megawatts of modules during the quarter, its second-highest quarterly production rate in company history, according to its statement. T1 added that it built 326 megawatts of inventory to facilitate deliveries in 2027 under new contracts. It said pricing and demand for Dallas modules had improved substantially, and its preliminary production plan for 2027 was 5.3 gigawatts.
On liquidity, T1 said it had $137.0 million in cash and cash equivalents and restricted cash on Sept. 30, 2026, including $59.5 million in unrestricted cash. On Nov. 12, the company said it was negotiating exclusively, with certain exceptions, with institutional investors to complete a debt financing solution for its G2_Austin plant. It said completion of the financing was not assured, and that it could not confirm it would agree on final documents or complete the financing in a timely manner on terms acceptable to it, or complete it at all. It said completing a comprehensive financing solution for the plant remained its priority. In a separate legal development, law firm Block & Leviton said it was conducting an active investigation into possible investor deception, noting that no lawsuit had yet been filed.
In another development involving the company, the U.S. International Trade Commission set Feb. 16, 2027, as the start date for a hearing in a patent case involving First Solar and companies including T1 Energy. The company had announced on Oct. 22, 2026, that it had received an exemption from the Commerce Department allowing it to import up to 1.725 gigawatts of solar cells. It said the exemption supports continued manufacturing in Dallas while the first phase of the G2_Austin cell plant, with capacity of 2.1 gigawatts, is built. The February hearing remains the next scheduled milestone in the case cited by the company in its quarterly report. T1 said construction of the plant and related financing remained part of its operating plans, while completion of the financing remained subject to final agreements and conditions precedent.