OpenAI Altman-supported nuclear energy company Oklo faces short selling by a well-known institution, with stock price plummeting by 10%

The renowned short-selling firm Kerrisdale Capital released a report on Wednesday, stating that it is shorting the stock of the nuclear fission reactor company Oklo, backed by OpenAI leader Sam Altman, causing the stock to drop significantly by 10% at one point on Wednesday. The report claims that "almost every aspect of the Oklo investment case is questionable." Oklo's stock price has been highly volatile recently, having risen over 20% as of Tuesday's close this week, while it had previously dropped 25% on Friday due to the release of financial results and the expiration of a lock-up period. The end of the lock-up period allows key investors, including Peter Thiel's venture capital firm, to begin selling shares. Since the company went public through a special purpose acquisition company (SPAC), its stock price has soared over 150%. Previously, Kerrisdale's short-selling has led to the plummet of "Bitcoin shadow stock" MicroStrategy and AI company C3.ai. In its short-selling report, Kerrisdale described Oklo as a "story stock" with no revenue, and the commercial viability of its small modular reactors (SMRs) has yet to be validated. "Under the typical SPAC model, Oklo has marketed exaggerated business metrics while severely underestimating the time and capital required to commercialize its products." Kerrisdale believes that Oklo's goal of deploying its first reactor by 2027 is unrealistic, citing a former U.S. Nuclear Regulatory Commission (NRC) commissioner who stated that this timeline is "too optimistic," as the licensing process alone could take at least four years. Kerrisdale also questioned Oklo's claims of operational advantages, noting: "Oklo claims that its small sodium-cooled reactors will be cheaper, easier to build, and safer than traditional nuclear power plants—these are also the advantages that advocates of small modular reactors (SMRs) have been touting for decades." However, Kerrisdale considers this to be "mutual flattery in business," and "investors should be wary of these unverified claims from the 'nuclear brothers.'" Kerrisdale pointed out the rising costs faced by other small modular reactor projects and Oklo's lack of a reliable long-term fuel supply, an issue expected to be resolved only by the 2030s. Additionally, Kerrisdale emphasized the fundamental challenges Oklo faces in management and finance. Citing a former Oklo employee's comment, it described the company's leadership team as "a group of very inexperienced people." Kerrisdale estimates that Oklo will need to raise an additional $2.7 billion in capital over the next five years to execute its plans. In summary, Kerrisdale believes that Oklo's stock price is "unsustainable," and with delays, rising costs, and the emergence of dilutive financing needs, its long-term prospects may face significant doubts and setbacks. The short-selling report caused Oklo's stock price to drop by as much as 10% at the open on Wednesday, later narrowing the decline to 4.24%, closing at $20.88. The stock has risen over 96% year-to-date Wall Street's view of the company has been notably divided so far. Among the four analysts responsible for Oklo, two have given a rating equivalent to "buy," while the other two maintain a neutral stance. The average target price indicates that there is about a 5% return potential from the current price level. In addition to Altman and Thiel, there is another notable figure in the company: board member Chris Wright was nominated last week by U.S. President-elect Trump to be the head of the Department of Energy