Short seller report triggers 12% decline in Fermi America stock over questions about regulatory permits and project viability.
Fermi America’s stock fell 12% after a short seller raised doubts about the validity of its regulatory permits. The report questioned whether the company secured necessary approvals for its flagship project, citing potential legal and operational risks.
Shares had risen 28% over the past three months on optimism about the project’s timeline. Analysts had previously flagged permit risks but expected resolution by year-end. The short seller’s allegations contradicted Fermi’s public statements, which assured investors of full compliance.
Trading volume spiked to 3.4 million shares, more than double the 30-day average, as investors reassessed the stock’s near-term outlook.