Sunnova CEO tries to reassure rattled investors after stock plunged 26% in worst day since March 2020
John Berger, chairman and chief executive officer of Sunnova Energy Corp., speaks during the 2019 CERAWeek by IHS Markit conference in Houston, Texas, U.S., on Thursday, March 14, 2019.
Aaron M. Sprecher | Bloomberg | Getty Images
The residential solar company Sunnova Energy took a beating this week as investors dumped their shares after the announcement of a stock offering plan rattled confidence in the company.
Sunnova shares plummeted 26.7% Thursday after the residential solar company announced a $100 million at-the-market stock offering program. Sunnova’s market cap declined by $382 million in the worst day for the company since March 2020 and the second worst day since its initial public offering in 2019.
CEO John Berger tried to reassure investors that Sunnova’s finances are sound and the company does not intend to sell its stock to raise capital anytime soon.
“This is just an arrow in the quiver just in case and the ratings agencies like to see it,” Berger told CNBC in an interview Thursday. “We don’t need to deal with the ratings agencies anytime soon, but it’s a smart thing to have — but we don’t need it.”
“I’m going to focus on generating our own cash rather than tapping into an equity, particularly something that’s now 25% discounted,” Berger said. Sunnova had a total of $494 million in cash as of Dec. 31, 2023, according to its quarterly report.
The announcement came after Sunnova posted a net loss that deepened to $234 million in the fourth quarter, compared to $62 million in the year ago period. Residential solar companies have struggled in the face of high interest rates that have made installations more costly to households.
Berger and Sunnova CFO Robert Lane described the stock offering as “good housekeeping.” Sunnova does not see a need to raise capital through 2026, Lane told analysts during the company’s earnings call Thursday.
Berger said in retrospect he would have waited on the stock offering plan: “Good housekeeping sure was expensive,” the CEO told CNBC after Thursday’s selloff.
Sunnova is also exploring asset sales and slashing costs using automation and artificial intelligence to keep the company’s headcount from growing, Berger said on the company’s conference call.
Solar under pressure
Sunnova is just the latest residential solar company to take a beating after its quarterly report. Its competitor Sunrun is down 22% this week after company posted another quarterly loss. SolarEdge has tumbled nearly 18% this week after issuing weak guidance for the first quarter.
Sunnova shares over the past year
The solar market faces an uncertain outlook this year. Investors had hoped aggressive interest rate cuts would act as a catalyst for the sector but that now seem less likely. Federal Reserve officials have made clear they are in no hurry to cut rates, with the market expecting the first reduction in June at the earliest rather than previous forecasts of March or May.
Berger does not see interest rates affecting Sunnova this year. He said the major utilities, which are also rate sensitive, are charging their customers more, which has allowed Sunnova to increase its prices without impacting demand.
“We have pricing power I’ve never seen this strong,” Berger said.
The CEO also addressed a December report that consumers have filed complaints in Texas alleging predatory sales tactics against the elderly. Two Republican members of Congress sent a letter on Dec. 7 to the Department of Energy calling for more scrutiny of Sunnova’s business practices. Sunnova’s stock dropped 16% after the lawmakers sent the letter.
“Whether our dealers did something or not, we typically have gone through and made sure that we’ve made good with the customer. In some of these cases, it’s difficult to find injury,” Berger said. The CEO said it is illegal to decline to sell to someone because of their age.
“There’s a lot of alternative facts that have been put forth in those cases, but it doesn’t excuse us from continuing to try to do better and we’re going to continue to do that,” Berger said.
— CNBC’s Pippa Stevens and Chris Hayes contributed to this report.
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Environment
CPSC warns Rad Power Bikes owners to stop using select batteries immediately due to fire risk
In an unprecedented move, the US Consumer Product Safety Commission (CPSC) has issued a public safety warning urging owners of certain Rad Power Bikes e-bike batteries to immediately stop using them, citing a risk of fire, explosion, and potentially serious injury or death.
The warning, published today, targets Rad’s lithium-ion battery models RP-1304 and HL-RP-S1304, which were sold with some of the company’s most popular e-bikes, including the RadWagon 4, RadRunner 1 and 2, RadRunner Plus, RadExpand 5, RadRover 5 series, and RadCity 3 and 4 models. Replacement batteries sold separately are also included.
According to the CPSC, the batteries “can unexpectedly ignite and explode,” particularly when exposed to water or debris. The agency says it has documented 31 fires linked to the batteries so far, including 12 incidents of property damage totaling over $734,000. Alarmingly, several fires occurred when the battery wasn’t charging or when the bike wasn’t even in use.
Complicating the situation further, Rad Power Bikes – already facing significant financial turmoil – has “refused to agree to an acceptable recall,” according to the CPSC. The company reportedly told regulators it cannot afford to replace or refund the large number of affected batteries. Rad previously informed employees that it could be forced to shut down permanently in January if it cannot secure new funding, barely two weeks before this safety notice was issued by the CPSC.
For its part, Rad pushed back strongly on the CPSC’s characterization. A Rad Power Bikes Spokesperson explained in a statement to Electrek that the company “stands behind our batteries and our reputation as leaders in the ebike industry, and strongly disagrees with the CPSC’s characterization of certain Rad batteries as defective or unsafe.”
The company explained that its products meet or exceed stringent international safety standards, including UL-2271 and UL-2849, which are standards that the CPSC has proposed as a requirement but not yet implemented. Rad says its batteries have been repeatedly tested by reputable third-party labs, including during the CPSC investigation, and that those tests confirmed full compliance. Rad also claims the CPSC did not independently test the batteries using industry-accepted standards, and stresses that the incident rate cited by the agency represents a tiny fraction of a percent. While acknowledging that any fire report is serious, Rad maintains that lithium-ion batteries across all industries can be hazardous if damaged, improperly used, or exposed to significant water intrusion, and that these universal risks do not indicate a defect specific to Rad’s products.
The company says it entered the process hoping to collaborate with federal regulators to improve safety guidance and rider education, and that it offered multiple compromise solutions – including discounted upgrades to its newer Safe Shield batteries that were a legitimate leap forward in safety in the industry – but the CPSC rejected them. Rad argues that the agency instead demanded a full replacement program that would immediately bankrupt the company, leaving customers without support. It also warns that equating new technology with older products being “unsafe” undermines innovation, noting that the introduction of safer systems, such as anti-lock brakes, doesn’t retroactively deem previous generations faulty. Ultimately, Rad says clear, consistent national standards are needed so manufacturers can operate with confidence while continuing to advance battery safety.
Lithium-ion battery fires have become a growing concern across the US and internationally, with poorly made packs implicated in a rising number of deadly incidents.
While Rad Power Bikes states that no injuries or fatalities have been tied to these specific models, the federal warning marks one of the most serious e-bike battery advisories issued to date – and arrives at a moment when the once-dominant US e-bike brand is already fighting for survival.
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Environment
Rivian’s e-bike brand launches $250 smart helmet with breakthrough safety tech and lights
ALSO, the new micromobility brand spun out of Rivian, just announced official pricing for its long-awaited Alpha Wave helmet. The smart helmet, which introduces a brand-new safety tech called the Release Layer System (RLS), is now listed at $250, with “notify for pre-order” now open on ALSO’s site. Deliveries are expected to begin in spring 2026.
The $250 price point might sound steep, but ALSO is positioning the Alpha Wave as a top-tier lid that undercuts other premium smart helmets with similar tech – some of which push into the $400–500 range. That’s because the Alpha Wave is promising more than just upgraded comfort and design. The company claims the helmet will also deliver a significant leap in rotational impact protection.
The RLS system is made up of four internal panels that are engineered to release on impact, helping dissipate rotational energy – a major factor in many concussions. It’s being marketed as a next-gen alternative to MIPS and similar technologies, and could signal a broader shift in helmet safety standards if adopted widely.
Beyond protection, the Alpha Wave also packs a surprising amount of tech. Four wind-shielded speakers and two noise-canceling microphones are built in for taking calls, playing music, or following navigation prompts. And when paired with ALSO’s own TM-B electric bike, the helmet integrates with the bike’s onboard lighting system for synchronized rear lights and 200-lumen forward visibility.
The helmet is IPX6-rated for water resistance and charges via USB-C, making it easy to keep powered up alongside other modern gear.
Electrek’s Take
This helmet pushes the smart gear envelope. $250 isn’t nothing, but for integrated lighting, audio, and what might be a true leap forward in crash protection, it’s priced to shake things up in the high-end helmet space.
One area I’m not a huge fan of is the paired front and rear lights. Cruiser motorcycles have this same issue, with paired tail lights mounted close together sometimes being mistaken for a conventional four-wheeled vehicle farther away. I worry that the paired “headlights” and “taillights” of this helmet could be mistaken for a car farther down the road instead of the reality of a much closer cyclist. But hey, we’ll have to see.
The tech is pretty cool though, and if the RLS system holds up to its promise, we might be looking at the new bar for premium e-bike head protection.
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Georgia is putting more federal National Electric Vehicle Infrastructure (NEVI) dollars to work, with $24.4 million allocated to 26 new DC fast-charging stations across the state.
The Georgia Department of Transportation (GDOT) has selected private-sector partners to build and operate the new stations, which will be located along federally designated Alternative Fuel Corridors. Each site will have four DC fast chargers available 24/7 and, with a minimum of 150 kW per port, capable of delivering a full recharge in as little as 20 minutes, depending on the EV.
This is the second round of Georgia’s NEVI awards. GDOT mapped out 33 priority sites near highway exits and interchanges in mostly rural areas to close gaps left after the first round in 2024. The response was strong: the EV charging industry submitted 41 proposals to cover 26 of those locations.
Six winners were selected: Pilot Travel Centers, Silver Comet Energy, Universal EV, PowerUp America, Love’s Travel Stops, and EnviroSpark Energy Solutions.
Governor Brian Kemp (R-GA) said, “We appreciate Georgia DOT for fulfilling the state’s commitment to a robust, reliable fast-charging network that meets federal standards and serves communities across Georgia.”
Georgia was allocated about $135 million through the NEVI program, part of President Joe Biden’s Bipartisan Infrastructure Law. The federal program covers up to 80% of the project costs, with private partners covering the balance.
Round 2 follows a legal battle earlier this year, when a lawsuit filed by several states (not Georgia) compelled the Trump Administration to release funds owed from the NEVI Formula Program. A federal judge blocked the Trump administration’s illegal attempt to obstruct the NEVI program in June, clearing the way for planned NEVI EV charging projects to continue.
Read more: Court says US must free up billions in illegally-frozen electric car charger funds
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