Shorts thrive as Luminar, Sunnova, and Cutera stock prices dive

Short sellers in Lumimar Technologies (LAZR), Sunnova Energy (NOVA), and Cutera (CUTR) are thriving as their stocks have plunged. Luminar’s shares have plunged by almost 50% this year and by more than 96% from its all-time high.

Cutera stock has also crashed by over 60% this year and by 98% from its record high. Sunnova Energy shares have retreated by over 68% this year.

This price action is notable since the three companies are some of the most shorted ones in Wall Street. Cutera has a short interest of 40.38% while Sunnova Energy and Luminar Technologies have 34.5% and 30.65%. 

Cutera vs Sunnova vs Luminar Technologies stock

These companies are going through major challenges. Sunnova Energy, as I wrote on SunPower, is struggling as solar energy goes through major woes. Demand for solar power in the United States has retreated in this high-interest rate environment. It has also been downgraded by the likes of Morgan Stanley and Janney. 

Sunnova Energy has also been highly dilutive. Data shows that the number of outstanding shares have jumped from over 83.9 million in 2019 to 122 million today. It will likely continue its dilution now that it has hinted of increasing its ATM by $100 million.

Luminar Technologies stock has also dropped hard after peaking in 2021. This crash happened as the company boosted its outstanding shares from 218 million in 2020 to over 322 million. It also has substantial cash burn, which stood at over $53.6 million in the last quarter. The company has also constantly missed analysts' estimates.

For starters, Luminar is a company that is a company that is working to reduce the number of vehicle accidents by creating LIDAR technology. It is working with automakers like Volvo, Daimler, and Nissan. 

Cutera share price has also plunged hard in the past few months. It has moved from a high of $74 in April 2022 into a penny stock trading at $1.15. This crash happened as the company continued diluting its investors, raising its outstanding shares from 14.2 million in 2019 to over 19.4 million.