Why Wolfspeed Stock Skyrocketed 27% Today

Group 1 - Wolfspeed's shares increased by 27% following the announcement of its exit from Chapter 11 bankruptcy, despite being down over 55% for the year [1][2] - The bankruptcy court approved a re-organization plan that will eliminate $4.6 billion in debt, representing a 70% reduction, and will cut annual interest expenses by 60% [2][7] - The company formally filed for Chapter 11 protection on June 30 due to mounting debt issues [3] Group 2 - While the debt reduction is significant, it does not address the company's underlying operational challenges and the slowdown in the electric vehicle market [5][6] - The balance sheet reset provides an opportunity for recovery, but execution challenges and market conditions create uncertainty regarding the turnaround [6][7]