Complete Solaria, Inc. (NASDAQ: CSLR) observed a substantial uptick in its stock value on Friday, marking an impressive climb of 68.22% to attain $0.45. This surge in CSLR shares ensued following the disclosure of an internal document pertaining to a short attack.
After the market’s closure on the preceding Thursday, Complete Solaria (CSLR) unveiled an internal memorandum detailing what appears to be a targeted assault on its stock immediately after the launch and announcement of its inaugural major employee stock option initiative. The specifics of this attack were elucidated within the internal memo circulated among employees.
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Complete Solaria expounded that the rationale behind the dissemination of this internal document stemmed from inquiries raised by the Chairman regarding internal leaks. While one of its private equity partners, Kline-Hill, concurred with the presented facts, the other entity, Carlyle, responded with a missive from a junior legal representative outlining the stringencies of their compliance regimen, overlooking the evident issue of information leakage to external parties.
Moreover, Complete Solaria recently provided an update on its current financial standing, including advancements in curtailing its cash burn rate. The company reported progress in its financial turnaround endeavors, notably exemplified by a drastic reduction in its workforce from 428 to 109 employees (-74.5%) across seven rounds of layoffs.
While lamentable, these layoffs were deemed indispensable for the company’s survival. Retaining only the top 25% of its workforce has resulted in a highly proficient staff pool. The Complete Solaria board sanctioned the allocation of 2.6 million stock options to retain these employees over the next five years and acknowledge their sacrifices.
Concurrently, there has been a correlated decline in operating expenses from $12,123,000 in Q1’23 to $5,655,000 in the current quarter. With a reduced workforce, Complete Solaria capitalized on the opportunity to shutter several facilities in California and relocate its headquarters to Salt Lake City, Utah—a hub of solar expertise—where costs are approximately 30% lower than those in California.
Despite the downsizing, Complete Solaria has witnessed a significant enhancement in employee productivity, alongside improvements in business processes, product quality, and a notable surge in its Net Promoter Score (NPS).
