What Drove SunPower (SPWR) Stock Higher After-Hours?

On Thursday, SunPower Corporation (NASDAQ: SPWR) continued its regular-session rally into the extended session, with its stock price increasing by 14.74% after-hours to $3.97, following a 6.46% rise during regular trading, closing at $3.46. This significant rally occurred without any obvious catalyst, prompting speculation that recent developments may explain this bullish trend.

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Financial Support And Cost Optimization

This week, SunPower (SPWR) drew upon the $50 million second tranche of a $175 million second lien term loan from Sol Holding, LLC, initially announced in February 2024. Sol Holding, jointly owned by affiliates of TotalEnergies SE and Global Infrastructure Partners, is the majority owner of SunPower’s common stock.

This funding underscores the continued support from its major shareholders, reflecting confidence in the long-term value of residential solar and SunPower’s commitment to maintaining a financially robust operation. Additionally, SunPower has been focusing on reducing overall costs and increasing the variability of costs with changes in volume to enhance business resilience and achieve consistent positive free cash flow in the future.

As part of this financial arrangement, SunPower has agreed to issue warrants to Sol Holding, allowing the purchase of approximately 33.4 million shares of common stock at an exercise price of $0.01 per share. The objective of this calculated financial move is to bolster the company’s capital structure and sustain its current operations.

Adding Tesla Powerwall 3 To The Product Portfolio

Moreover, SunPower has said that the Tesla Powerwall 3 will now be available as one of its products. This innovation is a part of a calculated attempt to offer a complete energy solution that combines Tesla’s well-known battery storage technology with SunPower’s industry-leading Equinox solar system.

SunPower had record-breaking battery storage sales in 2024 as homes looked more and more for alternatives to offset utility bill increases and grid interruptions. The partnership with Tesla Powerwall 3 is a natural progression, enabling SunPower to deliver top-tier solar and storage solutions under a unified platform, including sales, financing, and installation, thereby simplifying the adoption of clean energy for customers.

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