Soren Aandahl of Blue Orca Capital joins Zer0es TV to present his firm’s short thesis on Fluence Energy, Inc. (FLNC). In Blue Orca’s opinion, Fluence is facing an onslaught of issues, with the bombshell being a lawsuit from the US affiliate of its largest shareholder and corporate parent, Siemens. The suit alleges a laundry list of embarrassing and costly engineering and design failures, false representations, and most notably fraud. Shockingly, Fluence has yet to disclose this ongoing lawsuit to investors. Making matters worse, Blue Orca has found evidence to suggest that AES, Fluence’s other parent and largest customer (~30% of sales in FY23), is about to hammer Fluence on pricing as it sells its shares. These recent developments are only the latest in a long list of active and potential litigation which points to a pattern of incompetence and failures. With its historically heavy cash burn and diminishing support from frustrated corporate parents, Blue Orca thinks investors will be faced with a tidal wave of dilutive equity issuance as the Company desperately seeks cash to shore up its already shaky financials.
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