T1 Energy Inc. (TE) saw its stock plummet 8.94% during intraday trading on Friday, marking a significant decline for the energy company.

The sharp drop was attributed to dual pressures: unresolved short-seller allegations and heavy profit-taking following a recent rally. Short-selling firm Fuzzy Panda Research had published a report claiming that nearly all of T1 Energy's first-quarter revenue came from Chinese solar company Trina Solar, contradicting the company's promotion of AI data center clients. The company has not yet responded to these accusations, leaving investor concerns about its customer structure unaddressed.

Additionally, the stock had surged over 50% in preceding trading sessions due to better-than-expected Q1 earnings and a major position disclosure by an AI-focused hedge fund. This rapid ascent intensified technical correction pressure as investors locked in profits, exacerbating the downward movement.