After a 50 percent drop this year, Israeli solar company SolarEdge Technologies Inc. looks cheap to most analysts. Shortsellers are betting the pain has just begun.
Bearish bets against SolarEdge, whose technology makes rooftop solar usable for home appliances, climbed to a record 21 percent of shares outstanding this week. The stock has tumbled this year as growth in the U.S. residential market slowed and the main American competitor, Enphase Energy Inc., engaged in a do-or-die price war. Add to this that one of its largest customers, Elon Musk’s SolarCity Corp., said it will build the components it buys from SolarEdge in-house after merging with Tesla Motors Co.