FuelCell Energy stock is on the verge of another selloff as investors fear a spike in demand for batteries.
The stock rose 4% to $11.83 in afternoon trading on Thursday after the Federal Energy Regulatory Commission announced that it had approved a new rule allowing fuelcell plants to build more batteries, potentially increasing demand.
FuelCell Energy has been a standout performer this year, surging more than 6,000% over the past year.
The stock is now down more than 20% in the past three months, according to data compiled by Bloomberg.
But investors are wary of the fuel cell boom.
The boom has caused an unprecedented increase in energy use and has raised questions about fuel cell energy’s future.
Fuelcell Energy stock has been volatile in the last two years, falling sharply on a recent rally.
In late January, the stock fell nearly 30% after the Energy Department approved a rule that would require the use of batteries for fuel cell projects.
The market was already pricing fuel cell storage products out of the market.
The market has moved on to other energy products such as wind and solar.
Fuel Cell Energy stock was trading at $1.17 per share at the close of trade Thursday.