Fermi stock drops sharply after CEO and CFO departures (updated)

Fermi

20/04/2026 21:32

Adds Fermi declined to comment, paragraph 4, closing price

NEW YORK, April 20 (Reuters) - Shares of U.S. power startup Fermi FRMI.O fell sharply on Monday after the abrupt departures of its chief executive and co-founder Toby Neugebauer as well as its Chief Financial Officer Miles Everson.

Fermi dropped as low as $5.03 on the day following the announcement after markets closed on Friday. It closed down $5.40, falling about 18%.

The company said it created an interim office of the CEO to be run by two executives while a search is conducted for Neugebauer's replacement.

Short seller Fuzzy Panda Research disclosed a short position in Fermi on Monday, alleging fraudulent transfers and misappropriation of assets by Neugebauer and other company executives.

A Fermi spokesperson declined to comment.

Neugebauer, who co-founded Fermi in 2025, will remain on the board. Marius Haas was named as its new chairman while Everson was elected to its board of directors, the company said in a statement on Monday.

Among 10 analysts who cover Fermi, their average rating is "BUY" while their median price target is $26.50, according to LSEG data.

Fermi is developing a massive electricity generation site in Amarillo, Texas, to be powered by both natural gas and nuclear power. It is targeted at artificial intelligence companies and christened "Project Matador." Rick Perry, a former U.S. energy secretary and Texas governor, is also a Fermi co-founder.

"Although we expect shares to face near term pressure following the announcements, Fermi's board has reiterated the operational plan and timelines for Project Matador remain unchanged following the releases," said Texas Capital Securities analysts led by Derrick Whitefield in an investor note.

 (Reporting by Chibuike Oguh in New York; Editing by Nick Zieminski and Daniel Wallis)

 ((Email: Chibuike.Oguh@thomsonreuters.com; Phone: +332-219-1834; Reuters Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))