Solaris Energy falls after Morpheus Research takes short position

Shares of oil and gas infrastructure firm Solaris Energy SEI.N fall ~17.3% to $20.36

Morpheus Research says it has taken a short position in Solaris Energy

Solaris' acquisition of Mobile Energy Rentals, now rebranded as Solaris Power Solutions, is co-owned by John Tuma — erstwhile founder of Life Cycle Power, which was at the center of an $800 million gas turbine scandal in Houston — Morpheus Research

"Solaris' turbines at xAI's Memphis data center are currently operating without air permits and could be shut down after operating for 364 days if they do not receive them, according to industry experts and local reporting," investment firm says

Investment firm said SEI's 10-K showed 96% of turbine leasing revenue was driven by xAI in 2024

Reuters could not independently verify the claims in the short seller's report

Solaris did not immediately respond to Reuters' request for comment

Stock nearly quadruple in 2024, but YTD has fallen 26.4%