Plug Power (PLUG) saw its stock plummet by 5.10% in pre-market trading on Tuesday, continuing its downward trend as investors reassess the risks associated with the clean energy company. This latest drop adds to the significant decline the stock has experienced since its peak in 2021, having lost more than 95% of its value.

Plug Power, a company focused on building a business around hydrogen technology, has been facing challenges in achieving profitability. In its recent second-quarter results for 2025, the company reported a 21% year-over-year increase in revenue but still posted a loss of $0.20 per share. While its gross margin improved to negative 31% from negative 92% a year ago, Plug Power is still aiming to break even on gross margin only by the fourth quarter of 2025.

The market's reaction reflects growing concerns about Plug Power's path to profitability and the inherent risks in its business model. As a relatively young company in the competitive clean energy sector, Plug Power faces significant hurdles, including the high cost of hydrogen fuel compared to alternatives and the lack of widespread infrastructure to support its technology. These factors, combined with ongoing operational losses, have led investors to reassess the stock's value, resulting in today's sharp decline.