Shares of the US power startup firm fell sharply on Monday after the sudden departure of its chief executive and co-founder Toby Neugebauer and its chief financial officer Miles Everson.

Fermi fell as low as $5.03 on the day, down 23%, following the announcement after markets closed on Friday. The company said it has created an interim office of CEO to be run by two executives while a search is conducted for Neugebauer’s replacement.

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

Fermi did not immediately respond to a request for comment.

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

Among the 10 analysts covering the firm, they have an average rating of “BUY” while their average price target is $26.50, according to LSEG data.

Fermi is developing a large electricity generation site in Amarillo, Texas, powered by both natural gas and nuclear power. It is targeted at artificial intelligence companies and is named “Project Matador”. ⁠Rick Perry, former US Energy Secretary and former Governor of Texas, is also a co-founder of Fermi.

“Although we expect shares to face near-term pressure following the announcements, Fermi’s board reiterated that the operational plan and timeline for Project Matador will remain unchanged following the release,” Texas Capital Securities analysts led by Derrick Whitfield said in an investor note. (Reporting by Chibuike Oguh in New York Editing by Nick Ziminski)