January 6, 2026
Finance

Trump Media & Technology and TAE Technologies Advance Fusion Energy Plans Amid Investor Division

The companies initiate site selection for first fusion plant, while stock faces mixed market reactions

Summary

Trump Media & Technology Group Corp. and TAE Technologies have launched preliminary efforts to establish the United States' first commercial fusion power plant, aiming for a 2026 groundbreaking following regulatory and merger approvals. Despite these advancements, investor sentiment remains split as short interest rises and the stock grapples with long-term viability concerns.

Key Points

Trump Media & Technology Group and TAE Technologies have initiated the site selection process for their first commercial fusion power plant in the U.S.
The companies aim to break ground on the 50-megawatt plant in 2026, pending merger completion and regulatory approvals.
Site criteria include land size of at least 20 acres, access to power grids, proximity to cities and airports, skilled labor availability, supportive governments, and security considerations.
Following merger announcement, short interest in Trump Media stock rose by 31%, nearing 16 million shares, but the stock has also increased over 27% since then, despite a near 60% year-long decline.

Trump Media & Technology Group Corp. (NASDAQ: DJT) together with TAE Technologies have embarked on initial stages of planning for a pioneering fusion power plant in the United States. This collaboration marks a significant step toward launching commercial fusion energy within the nation.

The joint announcement reveals that the companies have commenced evaluating locations suitable for their inaugural fusion power facility. Their objective is to commence construction by 2026, a timeline contingent upon securing necessary regulatory clearances and finalizing their announced merger transaction.

The primary power plant is designed with an expected generation capacity of approximately 50 megawatts. Following this initial development, plans include construction of substantially larger subsequent plants with projected output ranging from 350 to 500 megawatts.

In their site selection process, the organizations are surveying properties measuring at least 20 acres. Adequate land size is essential to accommodate the initial fusion plant infrastructure, future scale-up reactors, and adjacent next-generation research facilities.

Site selection criteria also prioritize factors such as connectivity to a robust power grid system, proximity to urban centers and airports, availability of skilled labor, supportive state and local governmental entities, and the capacity to implement stringent security measures.

Devin Nunes, Chairman and CEO of Trump Media, emphasized that discussions with several states and strategic partners are underway as part of their merger preparation efforts. He framed the endeavor as an initiative to restore the United States' leadership in energy through the deployment of clean, affordable fusion power. Additionally, this energy source is anticipated to contribute to lowering overall energy costs and fostering growth in artificial intelligence industries.

The planned fusion plants will utilize TAE Technologies’ proprietary beam-driven fusion technology, aiming to offer a transformative approach to energy generation.

Regarding corporate developments, Trump Media and TAE Technologies have reached an agreement to merge in an all-stock deal valued in excess of $6 billion. The completion of this transaction is expected by mid-2026, pending the requisite shareholder and regulatory approvals.

Meanwhile, market participants remain divided on the company's future. Data from S3 Partners indicates that short sellers have increased their positions against Trump Media following the merger announcement, with short interest rising by 31% since December 18, approaching nearly 16 million shares—levels not seen since October.

Despite this short interest surge, Trump Media’s share price has risen more than 27% since the merger disclosure. However, over the course of the past year, the stock’s value has declined by almost 60%, reflecting ongoing investor concerns regarding the company’s sustained losses and uncertain long-term outlook.

It is notable that former President Donald Trump holds approximately 40% ownership in Trump Media. Post-merger, his stake is expected to dilute to about 20%, as indicated by Reuters.

At the time of reporting, Trump Media shares were trading at $14.43, representing a modest increase of 0.28% based on Benzinga Pro data.

Risks
  • Completion of the merger deal is subject to shareholder and regulatory approvals, which are not guaranteed.
  • Increasing short interest suggests significant skepticism among investors regarding the company's future performance.
  • The stock has experienced a substantial decline over the past year, indicating concerns about the company’s ongoing losses and long-term viability.
  • The ambitious timelines for plant construction and regulatory approvals may face delays, affecting company prospects.
Disclosure
Education only / not financial advice
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