SunPower stock collapses below $1 as company halts leases, installations and shipments

SunPower stock collapsed 70% this week after the company informed dealers that it will no longer support new leases, installations or product shipments, with analysts largely writing the company off as on the verge of going out of business.

The residential solar installer told dealers that it recognizes "the gravity" of the decision and is looking for alternative providers to transfer sold projects, according to a July 17 letter obtained by the firm Roth MKM.

SunPower stock has lost nearly all of its value the last 12 months, with shares down 93% to trade at 79 cents on Friday. Guggenheim Securities has slashed its price target to $0 from $1 previously.

"We think this effectively marks the end for SPWR as an operating business," Guggenheim analysts Joseph Osha and Hilary Cauley told clients in a Friday note. "Considering the debt that the company has accumulated, we believe that SPWR's equity no longer has any value."

CNBC reached out to SunPower for comment.

SunPower is likely "entering a winddown process" that will end in the sale of its remaining assets and the delisting of its stock, the Guggenheim analysts said. JPMorgan sees the decision as an "indefinite suspension" of SunPower's future dealings, according to a Wednesday note.

The decision to effectively suspend operations is the result of SunPower's weakened cash flow and balance sheet as well as its inability to tap capital markets because the company is not current with the Securities and Exchange Commission, JPMorgan analysts led by Mark Strouse told clients.

Piper Sandler suspended its coverage of the stock after the news.

SunPower had 524 megawatts in system installations and component sales in 2023, according to Guggenheim. This presents a significant opportunity