To The Moon

When $Eos Energy Enterprises Inc.(EOSE)$ announced its collaboration with Google and MN8 Energy in September, the market initially reacted strongly. Shares surged as investors saw the deal as a potential breakthrough for Eos’s zinc-based battery technology.

But the excitement hasn’t lasted.

EOSE closed at approximately $3.61 on September 2, the day of the announcement, after trading as high as $3.69. By September 8, it had climbed to $4.30 at the close, with an intraday high of $4.59. However, the stock subsequently reversed sharply, closing at just $1.73 on October 23. That’s a decline of roughly 60% from the September 8 closing price.

The question now is whether the market has become too pessimistic or whether investors are reassessing the risks.

🔋 What Is the Google Deal?

Google, MN8 Energy and Eos are collaborating on the Mammoth Solar project in West Virginia.

The project combines:

• 86 MW of solar generation

• 70 MW / 280 MWh of lithium-ion battery storage

• 10 MW / 100 MWh of Eos’s zinc-based long-duration battery storage

The project is designed to deliver cleaner, more dependable energy to the grid serving Google’s data centres.

For Eos, this is an important commercial opportunity. Google’s involvement gives the company’s technology valuable exposure to the growing market for data-centre energy storage.

However, this is a project led by MN8, not a direct acquisition of Eos by Google. Eos’s storage system is currently expected to enter commercial operation in 2030.

📉 Why Has EOSE Fallen Despite the Deal?

1. Investors want financial results, not just headlines

The Google collaboration strengthens Eos’s commercial story, but investors still need evidence that new projects can translate into sustainable revenue and profits.

2. Profitability remains a major challenge

Eos’s preliminary Q3 2026 update projected revenue of $82–83 million, representing approximately 169–172% year-over-year growth. Gross margin was still expected to be negative 53% to 55%, although this would represent a substantial improvement from the previous quarter.

Revenue is growing, but the company still has considerable work to do before it can consistently produce positive gross margins.

3. The timeline is long

The market often rewards promising announcements immediately, but commercial execution takes time. Eos’s portion of the Google-linked project is not expected to become operational until 2030.

Investors may be unwilling to price in the full potential years before the project begins operating.

4. Expectations can change quickly

The initial rally reflected optimism about the Google connection. When a stock has already moved sharply, disappointing financial results, concerns about cash consumption or broader market weakness can trigger a rapid reversal.

The price decline alone does not prove that the deal has lost value. It does show that the announcement has not been enough to sustain the earlier share-price momentum.

🚀 Could EOSE Recover?

There are reasons investors may continue watching the stock.

Eos reported preliminary Q3 revenue growth, improving gross margins and a backlog of approximately $765 million as of September 30. Its growing presence in commercial, industrial and data-centre energy storage could provide opportunities for further expansion.

A recovery would be more convincing if the company continues to improve production efficiency, reduces manufacturing costs, secures additional orders and demonstrates a credible path towards positive gross margins and cash generation.

But risks remain. Eos is still loss-making, and rapid revenue growth does not guarantee that shareholders will benefit. Financing requirements, execution challenges and potential dilution are also important considerations.

📌 My Take

The Google deal is a meaningful commercial milestone, but it hasn’t eliminated Eos’s financial risks.

The sharp decline from September’s highs suggests that investors are looking beyond the headline and demanding evidence of execution.

The key question for EOSE is no longer simply whether its technology can attract major customers. It’s whether the company can turn that demand into profitable growth before cash and financing pressures become more serious.

If Eos delivers on margins and production, the current share-price weakness could eventually look different in hindsight. If progress stalls, even a high-profile Google collaboration may not be enough to support a recovery.

For discussion purposes only.