Following Donald Trump's presidential election victory, renewable energy stocks have experienced a significant sell-off, benefiting short-sellers in this sector. According to Bloomberg's calculations on a global basket of renewable energy companies, this sharp decline has resulted in short-sellers gaining a paper profit of $1.3 billion.
Trump has consistently supported traditional energy sources such as fossil fuels. During his campaign, he emphasized expanding oil and gas extraction and eliminating renewable energy policies. Consultancy firm Wood Mackenzie previously noted that Trump's victory could jeopardize the anticipated $1 trillion investment in low-carbon energy in the U.S., reduce electric vehicle sales, and delay or halt wind, solar, and energy storage projects.
Data from S&P Global Market Intelligence highlights that Plug Power (PLUG), SolarEdge (SEDG), Bloom Energy (BE), First Solar (FSLR, Financial), and Enphase (ENPH) are the most shorted renewable energy stocks. The U.S. solar sector is also among the market segments with the highest short positions.
In Europe, Solaria Energy y Medio Ambiente SA, Nordex SE, and Orsted A/S stand out as the most shorted renewable energy stocks. Bloomberg's calculations indicate that the decline in Europe's renewable energy stocks since Monday's close has brought short-sellers a paper profit of $440 million.
