Why T1 Energy Stock Dropped Today

T1 Energy (NYSE: TE) stock, the company formerly known as Freyr Battery, slid 2.9% through 9:50 a.m. ET Friday morning after missing badly on earnings last night.

Analysts expected the solar manufacturing and battery storage company to lose $0.15 per share in its Q3 2025, but T1 reported instead a loss twice as large: $0.87 per share.

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T1 Q3 earnings

In a report heavy on business announcements but light on numbers, T1 boasted of accelerated solar module production in Dallas, promised to start construction of a new factory in Rockdale, and insisted it's making progress building "an integrated U.S. polysilicon solar supply chain."

T1's signing contracts to have customers "offtake" solar modules as it makes them, even as it lobbies the government to use Section 232 trade sanctions to reduce "the use of foreign-sourced polysilicon and polysilicon derivatives" in the U.S. The efforts seem to be bearing fruit. Management says that module sales in the fourth quarter will exceed the total sales during the first three quarters of 2025.

This is good news for U.S. energy independence, but it comes at a cost for T1. Q3 losses of $0.85 per share were more than eight times as large as what T1 posted in the year-ago quarter.

Is T1 stock a sell?

With any luck, ramping production will spread T1's fixed costs across more products sold, reducing losses going forward -- but T1 management didn't give any guidance promising that this will happen.

Wall Street analysts do forecast the company will turn profitable by 2027, earning $0.33 per share and then more than doubling that profit to $0.74 per share in 2028. At just $3 and change in price, T1 could be a buy... but it's going to take a couple of years for investors to know that for sure.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.