Sunnove (NOVA) stock is now down to $2 as it struggles with debt management and speculation that it may have to declare bankruptcy.
However, back in 2023 the company managed to secure a $3 billion loan guarantee from the DOE.
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Where is the source for the bankruptcy claim?
It was a year ago when the talk began. For example,
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So what is their condition currently?
They have been surviving, but its Altman z-score is 0.03. Scores near zero indicate financial stress.
Equity investors have been exiting; for example, last quarter Fidelity reduced its NOVA share position by half. YTD the share price is down by 50% and down over 80% in the last 12 months.
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This week was terrible for NOVA stock as the company is warning it may go out of business.
Sunnova Energy Stock Sinks as the Company Warns It Might Go Out of Business. āThe Overall Environment Is Terrible.ā
https://www.bloomberg.com/news/articles/2025-03-03/sunnova-s-71-stock-plunge-heralds-us-solar-s-state-of-chaos
Shares of Sunnova Energy International cratered Monday after the company issued a warning about its ability to keep operating, given the companyās cash constraints.
The stock plunged 64% to 60 cents after the rooftop solar company said its unrestricted cash, cash flows from operating activities, and commitments under existing financing agreements were ānot sufficient to meet obligations and fund operations.ā It issued what is known as a āgoing concernā warning, which raises doubts about a companyās ability to stay in business.
The rooftop solar industry has struggled lately, because fewer people are installing solar panels due to high interest rates and unfavorable or uncertain regulatory policies. As of December, energy-data firm Wood Mackenzie said 2024 U.S. installations were on track to fall 26% from the year before.
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Another month has passed and NOVAās share price has been cut in half again (currently $0.27). Interestingly enough, Sunnova did report a profit of one cent this last quarter when expectations had been for a $0.73/share loss.
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Trump Administration Cancels $3 Billion Loan to Troubled Sunnova Energy
https://www.energyconnects.com/news/renewables/2025/may/trump-administration-cancels-3-billion-loan-to-troubled-sunnova-energy/
The Trump Administration terminated a $3 billion loan guarantee awarded to Sunnova Energy Intentional Inc. after the solar company told officials it no longer intended to tap into the facility.
The US Department of Energy canceled the loan obligation Friday, according to Sunnova. The company had used about $371 million of the government loan guarantee, part of billions of dollars of financing offered by the Biden Administration to accelerate the deployment of clean energy and combat climate changeā¦
The solar developer has been laying the groundwork for a bankruptcy filing that could come within weeksā¦
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Seems like you pick trivial stories while other others with much greater financial impact are ignored. Why donāt you look at the costs that Trump administration is causing by shutting down renewable energy funding and promoting coal energy. This is real fraud on the public and the power companies.
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Heās learned at the hands of Fox & similar: elevate the trivial and point at it repeatedly, and crowd out the important and make it small.
Itās quite a playbook, and it seems to work, particularly with the uneducated and incurious.
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I may; there are, for example, a lot of subsidies that could be cut. On a kWh of produced energy basis, solar and wind subsidies are many times higher than for fossil fuels.
In addition to the small points (which illustrate some of the complexities of a complex situation) there are also large themes.
Two examples:
I think it is very important to know that over the last 10+ years, the percent of global primary energy from fossil fuels has only change by about one percentage point.
I think it is also important to know that while EV sales in the US are growing, the percent of consumers who find it likely (or very likely) that their next car purchase with be an EV has declined from 25% in 2022 to 16% currently, a drop of one-third in just three years.
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On a kWh of produced energy basis, solar and wind subsidies result in cleaner air, less CO2 emissions, less toxic emissions, while fossil fuels emissions are making people sick and die, increasing global warming, polluting our water ways and oceans, and destroying flora and fauna.
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Yes you maybe right that EV purchases may not be as attractive currently because of the Trump/EPA elimination of tax credits and the Elon Musk unpopularity across the country.
The tax credits for both the purchase of new EVs and for the purchase of used EVs is still in place.
The $7,500 federal EV tax credit is currently scheduled to phase out for most new vehicles after December 31, 2025. according to Kiplinger and NPR.
A House bill proposes to eliminate the new and used EV tax credits, as well as the credits for commercial EVs and home charging stations, after 2025.
AAA data show that the decline started 2-3 years ago.
Survey finds interest in buying electric vehicles declining
https://www.wwlp.com/news/massachusetts/survey-finds-interest-in-buying-electric-vehicles-declining/
Interest in electric vehicle purchases among U.S. adults drifted to its lowest level since 2019, according to a new AAA survey.
The automobile group reported Tuesday that 16% of adults reported they were either likely or very likely to buy a fully electric vehicle as their next car. Thatās down from 18% in 2024, 23% in 2023, and 25% in 2022.
Despite 75 new electric vehicle models being introduced in the past four years, the percentage of consumers indicating they would be unlikely or very unlikely to purchase an EV rose from 51% in 2022 to 63% in 2025.
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According to the provided information, here are the actual EV sales figures in the USA for the last 5 years:
- 2024: 1.3 million, which was a 7% increase compared to 2023.
- 2023: 1.077 million, according to Edmunds. Annual sales topped 1 million for the first time in 2023.
- 2022: 713,145, according to Edmunds. This was a 65% increase compared to 2021.
- 2021: 389,410, according to Edmunds. More than double the figure from 2020.
- 2020: 233,330, according to Edmunds.
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Iām remembering all the people who said āI would never have a computer in my houseā.
Also all those who said āMy flip phone is fineā
And those who said āI donāt need cable, I get my TV for freeā
People often say things they donāt mean or change their mind later. Marketers are careful not to accept these sorts of responses at face value. Yes, sometimes theyāre spot on, but often theyāre not.
Want a list of things people said they didnāt want, that were even laughed at, and then sort of caught on? The lightbulb. The umbrella. Answering machines. Bicycles. Cheeseburgers.
But I will say the oil & gas lobby is doing a bang-up job trying to stop the tide.
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Some of the automakers are also doing yeoman work towards slowing the adoption of EVs in the USA. They are doing this by producing substandard EVs that arenāt attracting customers fast enough. Shockingly, Toyota, perhaps the best automaker in the world, is one of the offenders (their bZ4X, for example, is a terrible EV, with a terrible name).