Plug Power (PLUG) saw its stock price plummet by 5.08% in pre-market trading on Tuesday, as investors continue to grapple with the company's ongoing financial challenges and uncertain path to profitability. The hydrogen fuel cell technology pioneer has been facing persistent losses and significant cash burn, raising concerns about its long-term viability.

According to recent analysis, Plug Power has been a disappointment for investors, with its stock price plummeting a staggering 99% since its initial public offering in 1999. The company's poor performance is primarily attributed to its inability to generate profits, forcing it to issue more stock to fund its operations and expansion. In the first quarter of this year, Plug Power reported a negative gross margin of 55% and a net loss of $196.7 million, burning through $152.1 million in cash.

While Plug Power maintains an optimistic outlook, projecting profitability by late 2028 and anticipating 30% annual revenue growth in its energy and applications businesses, investors remain skeptical. The company's immediate challenge is to secure funding to support its operations until it becomes sustainably profitable. Although Plug Power recently obtained a $1.6 billion loan guarantee from the U.S. Department of Energy and a $525 million credit facility, the potential need for future dilutive stock offerings continues to weigh heavily on investor sentiment, contributing to the stock's downward trajectory.