Shares of Fermi plunged 23% to $5.03 on Monday after the company disclosed the sudden departures of its chief executive and chief financial officer and a short seller leveled allegations against company leaders, prompting investor concern.

Board shake-up and market reaction

Fermi's stock collapsed after the company disclosed the sudden departures of its chief executive and co-founder, Toby Neugebauer, and its chief financial officer, Miles Everson. The share price fell as low as $5.03 on Monday, wiping out roughly a quarter of the company's market value as investors reacted to the leadership change announced after markets closed on Friday.

The company said it has established an interim office of the CEO to be run by two executives while it conducts a search for Neugebauer's successor. Neugebauer will remain on the board; Marius Haas was named the board's new chairman and Everson was elected to the board, the company said in a statement on Monday.

The departures came without a detailed public explanation, and the timing amplified investor concern. Shares had traded at much higher levels earlier this year as investor interest in data centers and AI infrastructure surged. Monday's move erased those gains and forced traders to reassess Fermi's near-term path.

Allegations from a short seller

A short seller identified as Fuzzy Panda Research disclosed a short position in Fermi on Monday and alleged fraudulent transfers and misappropriation of assets involving Neugebauer and other executives. The disclosure said the conduct, if proven, would materially affect investor confidence. Fermi did not immediately respond to requests for comment on the claims and said its operational plans and timelines for Project Matador remained unchanged.

Project Matador: the business behind the stock

Fermi is developing a large electricity generation and data center complex in Amarillo, Texas, called Project Matador. The plan calls for a hybrid energy approach combining natural gas and nuclear power to deliver dense, reliable electricity to AI customers. Rick Perry, the former U.S. energy secretary and Texas governor, is listed among Fermi's co-founders and has been a public face tied to regulatory and political outreach.

Securing construction permits, financing and major customer commitments is central to the project's progress. Investors have been watching those milestones closely; any delay or funding shortfall could push out revenue timelines and raise questions about how the company will fund its capital-intensive rollout.

What analysts are saying

Among ten analysts covering Fermi, the average rating is "BUY" with a median price target of $26.50, according to LSEG data. That median sits far above Monday's trading level, reflecting a wide gap between sell-side expectations for the project's long-term value and the market's near-term reaction.

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Neugebauer will remain on Fermi's board, and Marius Haas was named chairman, the company said.