Wind turbine troubles have sent one stock tumbling. There are fears it could be a much wider issue
A Siemens Gamesa blade factory on the banks of the River Humber in Hull, England on October 11, 2021.
PAUL ELLIS | AFP | Getty Images
Costly failures at wind turbine manufacturer Siemens Gamesa last month sent shares of parent company Siemens Energy tumbling, and analysts are concerned about wider teething problems across the industry.
The German energy giant scrapped its profit guidance in late June, citing a “substantial increase in failure rates of wind turbine components” at its wind division Siemens Gamesa.
Siemens Energy CEO Christian Bruch told journalists on a call Friday that “too much had been swept under the carpet” at Siemens Gamesa and that the quality issues were “more severe than [he] thought possible.”
Siemens Energy stock plunged by around 37% on June 23, while other wind companies also saw shares retreat as investors worried that the problems at Gamesa might be a symptom of a wider issue for the industry.
Nicholas Green, head of EU capital goods and industrial technology at AllianceBernstein, told CNBC that the pace of expansion, and the fact that many components of larger turbines haven’t actually been in use for very long, means there could be inherent risks throughout the sector.
“We have to acknowledge that putting brand new machinery — whether it’s on-shore or even more difficult off-shore wind farms — and the pace of change in that machinery has put us into slightly uncharted territory,” he said.
“Although it’s hard to tell at the moment, my best guess is that this probably actually is an industry-wide issue. It wasn’t that Siemens Gamesa is a bad operator as such, it’s that actually some of the normal protocols and time in use, operational data in use, is relatively limited.”
Siemens Gamesa’s board is now due to conduct an “extended technical review” into the issue, which is expected to incur costs in excess of 1 billion euros ($1.09 billion). The company’s shares have recouped some losses, but remain down over 33% in the last month.
A tough two years
The wind industry has expanded rapidly over the past two decades, lowering costs to rival — and sometimes undercut — those of fossil fuels, while boosting efficiency with ever-bigger turbines and reducing reliance on state subsidies.
“These cost reductions have been achieved with innovations in turbine technology and by pushing the boundaries of engineering,” Christoph Zipf, spokesman for industry body WindEurope, told CNBC via email.
He said that 20 years ago, a typical wind turbine would have 1 million watts of capacity; today, European original equipment manufacturers, or OEMs, are testing 15 MW turbines.
“This means that turbines have become bigger as well, posing challenges to components (quality, materials, longevity). The introduction of competitive auctions has also been a driving factor in this cost reduction,” Zipf added.
The Statistical Review of World Energy report published last week revealed that wind and solar power accounted for 12% of the world’s power generation last year, with wind power output increasing by 13.5%.
The industry was hit hard by the Covid-19 pandemic, as resulting lockdowns depressed industrial activity and reduced global energy demand. The ensuing supply chain problems then hampered OEMs.
These manufacturers have since endured a further shock from soaring inflation and input costs as Russia’s invasion of Ukraine disrupted markets and aggravated supply chain disruptions. WindEurope estimates that the rise in commodity prices has increased the price of wind turbines by up to 40% over the last two years.
“OEMs were sourcing some material from Russia (mostly nickel) and Ukraine (mostly steel). The price of both skyrocketed after the invasion. This comes on top of the challenging inflationary environment all European businesses are operating in (i.e. rising electricity prices, etc.),” Zipf explained.
“A main problem for the OEMs is that not all countries had indexed their renewables auctions. Consequently wind turbine orders were not necessarily indexed to inflation. The time between the order intake and the commissioning of a wind turbine can take up to 18 months (especially when supply of materials is short).”
However, Zipf denied that industry-wide technical failures could be on the horizon, insisting that “the problems at Siemens Gamesa are limited to Siemens Gamesa.”
“Big turbine failures are extremely rare given the number of turbines installed in Europe already. However, the competition in the sector is pushing OEMs to come up with bigger and better turbines at a fast rate, may be faster than in other sectors,” he said.
He also challenged the notion that the industry has entered “uncharted territory,” arguing that the changes in turbine technology have been “incremental and evolutionary.”
“Naturally every new turbine model comes with new challenges, requires rigorous testing and certification. But the European wind industry has overcome all of these challenges and maintained its reputation for delivering highly reliable high-quality turbines,” Zipf said.
Facts and figures
According to ONYX Insight, which monitors wind turbines and tracks over 14,000 across 30 countries, most turbines are designed and certified for 20 years but contain components that will fail during that time due to a “compromise between the cost of the system and reliability.”
“We have been aware for some time that turbine failure rates across the industry can — and should — be more widely understood, given the scale of their potential impact on the overall profitability of projects,” Evgenia Golysheva, vice president of strategy and marketing at ONYX, told CNBC.
“It’s not that they are made badly, but we now have a compromise between the cost of energy and targeted reliability. Everyone who builds, finances and operates wind turbines needs to have a realistic picture of how many failures to expect.”
In turbines built in 2023, more than 40% of gearboxes will need to be replaced after 20 years of project life, according to ONYX, along with over 20% of main bearings and more than 5% of blades.
Across the wind industry, around 65% of operations and maintenance costs are unplanned, according to ONYX. It projects that major corrective spending will rise to $4 billion by 2029.
“The growth of wind installations has been unprecedented, and the industry has had to scale up very quickly with little time to digest it. It’s not a capacity issue, and it’s not new, but it is good that OEMS (who are under pressure from supply chain and from inflation) are bringing this conversation into the public domain,” Golysheva explained.
“It’s a conversation that is overdue, because the underlying issues aren’t going away. For example, wind turbine rotors are getting bigger, the turbines are getting bigger, and the development cycles are short, so it’s crucial to have digital and other diagnostic tools to be able to deal with reliability issues.”
Environment
It seems like Elon Musk stoking a civil war in England isn’t good for Tesla’s sales there
Tesla’s EV registrations in the UK, its biggest market in Europe, took a dramatic hit in October 2025 — just 511 units — marking one of the brand’s weakest showings in recent memory. That’s a steep drop from 971 in October 2024 and 2,677 in October 2023. The tone of the market is shifting.
Maybe Tesla’s CEO stoking a civil war in England isn’t helping the automaker’s demand in the important market.
Tesla’s sales have been struggling in Europe over the past two years, and the decline has been accelerating in 2025.
While some believed that things were stabilizing for the American automaker in Europe, the October data tells a different story. Tesla had its worst month of deliveries of the year in 12 of its 15 biggest European markets.
As Tesla sales in Germany crashed over the last year, partly because Tesla CEO Elon Musk supported the far-right AfD party, the UK became Tesla’s biggest market in Europe.
But now it looks like the UK is going in the same direction.
According to registration data, Tesla delivered only 511 vehicles in the UK in October 2025. Tesla has over 50 stores in the country – that’s an average of roughly 10 vehicles per location for the whole month.
It’s the worst monthly performance since October 2022.
Much as Tesla’s demand crashed in Germany, Elon Musk’s politics might be behind the lower demand in the UK.
The CEO regularly comments on UK politics and often shares inflammatory reports about crimes perpetrated by immigrants. He also shares misleading crime and immigration statistics aimed at spreading hatred.
After he tweeted that “Civil war is inevitable. Just a question of when.”, he was accused of stoking a civil war in the country.
Musk’s public commentary on UK topics has sparked backlash and resulted in his “unfavorability rating” reaching 80% in the country.
Electrek’s Take
Meanwhile, Tesla’s demand cliff is opening the door to competitors. BYD is now expected to outsell Tesla in the whole year of 2025 in the UK despite Tesla having a presence in the market for much longer.
Not many industry watchers thought it would happen this fast.
Tesla appears to be completely missing out on the surge of EV sales in Europe due to a mix of having a stagnant EV lineup, brand problems brought on by a controversial CEO, and increased competition.
In the US, Musk is believed to have cost Tesla about 1 million sales over the last 3 years.
I think it will soon be approaching this number in Europe.
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Rondo Energy and energy producer EDP are installing a massive 100 MWh renewable-powered heat battery at HEINEKEN’s brewery in Lisbon, Portugal. The project will deliver round-the-clock renewable steam and reduce emissions without altering the facility’s beer brewing process.
Brewing HEINEKEN with zero-carbon steam
The Rondo Heat Battery (RHB) will be the biggest deployed in the beverage industry worldwide. It can store electricity as high-temperature heat using refractory bricks, then convert that heat into 24/7 steam, all without burning fossil fuels.
At HEINEKEN’s Central de Cervejas e Bebidas Brewery and Malting Plant, the heat battery system will supply 7 MW of steam, powered by renewable electricity from onsite solar and the grid. That steam is identical to steam created by gas-fired boilers, but without the carbon pollution.
EDP is providing the renewable electricity and will deliver the steam directly to HEINEKEN via a Heat-as-a-Service model. Rondo is supplying the battery, and HEINEKEN gets to ditch fossil fuels without retooling its brewing process.
Why this matters
This project is a big win for industrial decarbonization. High-temperature steam is one of the most complex parts of manufacturing to electrify, and the beer industry runs on it. HEINEKEN’s Lisbon site already uses solar panels for electricity and electric heat pumps for hot water, and this move helps it go even further.
It’s part of HEINEKEN’s “Brew a Better World” plan to hit net zero emissions by 2040 and decarbonize all of its global production sites by 2030.
Additionally, the deployment aligns with Portugal’s national target of reducing greenhouse gas emissions by 55% by 2030.
The bigger picture
With the European Investment Bank and Breakthrough Energy Catalyst backing this and other Rondo projects with €75 million in funding, this Lisbon installation is just the beginning. Rondo’s technology enables energy-hungry industries to switch from fossil fuels to renewable electricity without compromising 24/7 operations.
Rondo CEO Eric Trusiewicz sums it up: “We are thrilled to be installing our first Rondo Heat Battery in Iberia, and to support HEINEKEN to reach its goals. We look forward to helping industries across Iberia cut costs and carbon, and help Iberia capitalize on the opportunity.”
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Lucid Group (LCID) reported third-quarter earnings after the market closed on Wednesday, missing top and bottom-line estimates.
With 4,078 vehicles delivered in Q3, Lucid marked its seventh straight quarter with higher deliveries. Through the first nine months of 2025, Lucid delivered nearly 10,500 vehicles, more than the roughly 10,200 it handed over in 2024.
Although supply chain issues hampered production in the first half of the year, Lucid’s CEO Marc Winterhoff said the company made “significant progress ramping production of the Lucid Gravity through Q3,” including adding a second manufacturing shift at its Casa Grande, Arizona, plant.
Lucid produced 3,891 vehicles in Q3, missing estimates of around 5,600. With 9,966 EVs produced through the third quarter, Lucid will need to build over 8,000 more to meet its full-year production goal of 18,000 to 20,000.
According to estimates, Lucid is expected to report an adjusted quarterly loss of $2.27 per share on revenue of $352 million in Q3 2025.
Lucid Group Q3 2025 earnings breakdown
Lucid missed top and bottom-line estimates as it continues to address industry-wide supply chain issues that are hampering production of the Gravity SUV.
Although it missed estimates, Lucid reported Q3 revenue of $336.6 million, which is still up 68% from $200 million in the same period last year.
Lucid’s net loss narrowed to $978.4 million in the third quarter, or $3.31 per share, from $992.5 million, or $4.09 per share, in Q3 2024. On an adjusted basis, Lucid posted a loss of $2.65 per share.
In addition, Lucid said it agreed with Saudi Arabia’s Public Investment Fund (PIF) to increase the delayed draw term loan credit facility (DDTL) from $750 million to around $2 billion.
Given the increase, Lucid said total liquidity would have been around $5.5 billion at the end of Q3, up from the $4.2 billion it reported. Lucid ended the third quarter with $1.6 billion in cash and equivalents.
Lucid said liquidity is enough to fund it through the first half of 2027, up from the second half of 2026, as previously forecast. Lucid plans to launch production of its more affordable midsize platform in late 2026 with vehicles starting at around $50,000.
Lucid confirmed it was still on track to start production of the midsize platform later next year. However, given the supply chain issues, it now expects to hit the lower end of its production goal at around 18,000.
Winterhoff said the company “remains intensely focused on ramping up production and addressing the significant supply chain disruptions impacting the entire industry.”
Lucid is advancing other emerging tech, including autonomy and intelligent mobility. Through a new partnership with NVIDIA, Lucid aims to be among the first to offer Level 4 autonomous driving.
The third-quarter earnings miss comes after Rivian (RIVN) beat expectations this week, reporting higher revenue and improving gross margins.
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