FuelCell Energy (FCEL) Shares Fall Amid Stellantis' Discontinuation of Hydrogen Fuel Cell Technology

Shares of FuelCell Energy (FCEL) fell 3% after Stellantis announced the discontinuation of its hydrogen fuel cell technology development program. The move raises questions about the pace of hydrogen adoption and infrastructure development. FuelCell Energy's shares have been volatile, with 91 moves greater than 5% over the last year. The stock is down 52.4% this year and trading 76% below its 52-week high.

Shares of FuelCell Energy (FCEL) fell 3% in the morning session on July 2, 2025, following an announcement by automotive manufacturer Stellantis. The company announced it would discontinue its hydrogen fuel cell technology development program, citing significant headwinds such as a lack of refueling infrastructure, high capital needs, and insufficient consumer incentives. This decision casts a shadow over the near-term viability of the hydrogen fuel cell market and has created headwinds for companies across the hydrogen and fuel cell ecosystem [1].

FuelCell Energy, which specializes in carbonate fuel cell technology, is not directly involved with Stellantis. However, the announcement raises broader questions about the pace of hydrogen adoption and the development of necessary infrastructure, critical for the growth of the entire sector. While the stock market tends to overreact to news, this particular development has not fundamentally changed the market's perception of FuelCell Energy's business [1].

Over the past year, FuelCell Energy's shares have been extremely volatile, with 91 moves greater than 5%. The company's stock is down 52.4% since the beginning of the year and currently trades at $4.94 per share, 76% below its 52-week high of $20.60 from July 2024. Investors who bought $1,000 worth of FuelCell Energy's shares five years ago would now be looking at an investment worth $53.61 [1].

Despite the recent setback, FuelCell Energy has been making strategic moves to expand its presence in the AI and data center markets. In July 2025, the company signed a Memorandum of Understanding (MOU) with Inuverse to deploy up to 100 megawatts (MW) of fuel cell-based power at Korea's AI Daegu Data Center (AI DDC), signaling growth in the hyperscale and AI markets [2].

Additionally, FuelCell Energy's CEO, Jason Few, has endorsed the "One Big Beautiful Bill Act" (OBBBA), highlighting its significant support for the fuel cell industry. The legislation includes key provisions such as the reinstatement of the Investment Tax Credit (ITC) and preservation of federal tax credit transferability, which could bolster the company's operations and growth prospects [2].

Investors should keep an eye on FuelCell Energy's second quarter 2025 financial results, scheduled for release on June 6, 2025. The company has been refocusing on carbonate-based distributed generation, particularly for data centers, while pausing solid oxide research and development. The company aims to achieve positive Adjusted EBITDA once its Torrington facility reaches 100MW annual production [2].

In conclusion, while the recent announcement from Stellantis has negatively impacted FuelCell Energy's stock, the company continues to make strategic moves in the AI and data center markets. Investors should closely monitor the company's financial performance and future developments in the hydrogen fuel cell industry.

References:
[1] https://stockstory.org/us/stocks/nasdaq/fcel/news/why-up-down/why-fuelcell-energy-fcel-shares-are-sliding-today
[2] https://www.stocktitan.net/news/FCEL/