(Bloomberg) -- Shares of Maxeon Solar Technologies Ltd. plunged after the manufacturer issued a “going concern” warning and said it will receive almost $200 million in investments from its top shareholder.

Maxeon’s troubles come as segments of the US solar industry have struggled amid high interest rates, overseas competition and changed California residential incentives that have hobbled installations.

The Singapore-based solar company’s stock dropped as much as 53% in New York, the most since 2020, as the investment from TCL Zhonghuan Renewable Energy Technology Co. will result in substantial dilution of shares. Maxeon also issued revenue guidance for the second quarter that missed the average analyst estimates. 

Maxeon said in a filing that if market conditions persisted and it didn’t raise money, it wouldn’t have enough liquidity to meet its financial obligations. “As such, there is substantial doubt about the company’s ability to continue as a going concern,” the filing said.

China-based TCL Zhonghuan Renewable Energy Technology will become the company’s controlling shareholder after it provides $97.5 million in debt and $100 million in equity investment, according to a separate statement Thursday. 

“Maxeon has been facing a very difficult market environment,” Chief Executive Officer Bill Mulligan said in the statement. “The board determined that the most viable financing option to support our immediate liquidity needs was from our largest shareholder.”

Maxeon’s business has contended with price and demand headwinds in both the US and Europe, Mulligan said. The company’s first-quarter results and manufacturing volumes also suffered from two significant delays in customer projects.

The company has suffered as panel prices in the US rooftop solar sector have plummeted to as low as 10 cents per watt, from about 40 cents over a year ago, BloombergNEF analyst Pol Lezcano said in an email. 

Suppliers in Southeast Asia have also rushed to ship panels to the US before a June deadline when new tariffs take effect. Those manufacturers targeted the US rooftop solar segment, which is Maxeon’s primary market, according to Lezcano.

©2024 Bloomberg L.P.